Financial Results for the First Half of
Fiscal Year Ending March 31, 2022 (FY2021)

November 4, 2021

Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation

I am the CAFO, Muto. I will now explain the 2nd-quarter results for the
fiscal year ending March 2022.

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 be guarantees
of future events or performance. Accordingly, it should be noted that actual results may differ from those
forecasts 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 / 242

Highlights
FY21 Q2/Q2 YTD results
Revenue: Highest-ever quarterly and half-year revenue. Steady recovery in demand for Cardiac &Vascular and the revenue increased in the other two companies as well
Adjusted Operating Profit: Highest-ever Q2 and half-year adjusted operating profit. Although there
were some negative factors as expected, the revenue increased in all companies. Expenses utilized
as planned in Q2

FY21 guidance
The current guidance is reiterated. The annual dividend forecast per share increased by 2 JPY
to 32 JPY
Continuous recovery in healthcare demand, including the number of procedures anticipated.
Although some risks remain such as supply chain interruption, increase in the cost of raw materials,
shipping and freight, we aim to achieve the current guidance by expense control©TERUMO CORPORATION

3 / 24First, the highlights from the quarter.
Sales and profit were both our highest ever.
In sales revenue, demand for Cardiac and Vascular Company products
made a significant recovery from COVID-19 impact. Although thatcompany was somewhat affected by a repeated wave of COVID due tothe Delta variant, the other two companies covered that impact.
In adjusted operating profit, a recovery in sales and product mix
improvement both contributed. Expenses including SG&A, which rose
slowly in the 1st quarter, progressed as planned in the 2nd quarter.
There is no change in the guidance for the full fiscal year, but we willraise the dividend to 32 yen from the previous 30 yen.
We anticipate a continued recovery of demand for procedures in the 2ndhalf, which will bring our results into a growth pattern. However, amid
what is expected to become a more concerning situation of higher freightcosts due to supply chain difficulties, and rising materials costs for things
including oil and natural gas, we plan to carefully monitor conditions
while controlling costs and striving to achieve our guidance.

3

P&L Results
Revenue: Highest-ever quarterly and half-year revenue. Steady recovery in demand for Cardiac & Vascular, especially for TIS. Despite the negative
impact on Cardiac & Vascular from the COVID-19 resurgence mainly in US and EU in Q2, the revenue increased in all companies
Adjusted Operating Profit: Highest-ever Q2 and half year adjusted operating profit. The negative impacts of volume-based procurement (VBP) in China
and lowered production level were as expected and the profit increased in all companies. In accordance with eased movement restrictions due to the
spread of vaccines mainly in US and EU, expenses utilized as planned in Q2

FY20 Q2 YTD

FY21 Q2 YTD

YoY%

YoY% (FXN)

Revenue
Gross Profit

100 M JPY

2,833
1,505

3,446
1,862

22%
24%

17%
18%

(Gross Profit%)(53.1%)(54.0%)

859

955

11%

7%

(30.3%)(27.7%)

SG&A Expenses(SG&A Expenses%)

R&D Expenses(R&D Expenses%)

Other Income and Expenses
Operating Profit

231

247

(8.2%)(7.2%)

4
418

-2
659

(14.8%)(19.1%)

Adjusted Operating Profit

513

741

(Adjusted Operating Profit%)(18.1%)(21.5%)(Operating Profit%)

Profit before Tax(Profit before Tax%)

407

653

(14.4%)(18.9%)

318

500(11.2%)(14.5%)

Average Exchange Rate(USD/EUR) 107JPY/121JPY

110JPY/131JPY

Profit for the Year
(Profit for the Year%)©TERUMO CORPORATION

7%

4%

57%

47%

45%

36%

61%
57%

FY20 Q2

FY21 Q2

YoY%

1,520
816

1,729
920

14%
13%

(53.7%)(53.2%)

458

490(30.2%)(28.4%)

119130(7.8%)(7.5%)

-1
238

-3
296

(15.6%)(17.1%)

296

339(19.5%)(19.6%)

228

293(15.0%)(16.9%)

178

221(11.7%)(12.8%)

7%
9%
25%
15%
28%
24%

106JPY/124JPY 110JPY/130JPY

4 / 24

Here are the P&L results for the 2nd quarter.
The numbers second from left, our year-to-date revenue, was 344.6
billion yen, a 22% increase year-on-year for the same period.
Adjusted operating profit was 74.1 billion, or a 45% increase. The
numbers second from right are our 2Q standalone results. Revenue was
172.9 billion yen, a 14% year-on-year increase. Adjusted operating profit
was 33.9 billion, or a 15% increase. Expenses such as sales promotion
activities and R&D progressed as planned in the 2nd quarter.

4

Adjusted Operating Profit Variance Analysis (Q2 YTD)
(100 M JPY)
Gross
marginPrice-20
JP NHI-1

G/P
incrementby salesincrease

SG&A

Production
Adjustment

Gross margin:
Positive impact of product mix improvementfrom sales increase of Cardiac & Vascular,
especially of TIS

FX

R&D
MDR
0
IT
0

G/P increment by sales increase:
The revenue increased in all companies
compared with FY20 Q2 YTD impacted by
COVID-19

OthersPrice:
Decline mainly due to VBP in China for TIS
products
SG&A:
Large increase compared with FY20 Q2 YTD
in which expense usage was slow due to
COVID-19

FY20
Q2 YTDOP

FY20
Q2 YTD
Adj. OP©TERUMO CORPORATION

FY21
Q2 YTD
Adj. OPFY21
Q2 YTDOP

FX:
Positive impact from flow mainly by EUR and
CNY. Small impact from stock

5 / 24This is the adjusted operating profit variance analysis compared to theprevious year.
Gross profit increment by sales increase was 27.6 billion yen. Increased
revenue from the Cardiac and Vascular Company had a large effect, butrevenue growth from the other two companies also contributed.
Price declines due to TIS product tenders in China and planned
production adjustments were downward factors, but they were absorbed
primarily by improved product mix due to increased TIS product sales.
SG&A were higher than the previous year, when activities were affectedby COVID-19, but those activities have normalized as planned and arereflected in these SG&A results.
R&D costs and other expenses including those associated with starting
the source plasma business are reflected as proceeding according to plan.
FX impact was a positive 4.6 billion yen, primarily due to flows between
the euro and Chinese yuan. The impact on stock is minor.

5Adjusted Operating Profit Variance Analysis (Q2)(100 M JPY)
Gross
marginG/Pincrementby salesincreasePrice-8
JP NHI-1

SG&A

Production
Adjustment

FX

R&D
MDR
0
IT
1

G/P increment by sales increase:
Despite a slowdown due to the COVID-19
resurgence, positive revenue growth in allcompanies, especially in Cardiac & Vascular,
compared with FY20 Q2 largely impacted by
COVID-19
Gross margin:
Decline driven by labor shortage in US factories,
lowered operations in Vietnam factories due tothe COVID-19 resurgence and increased cost of
shipping and freight

OthersPrice:
Decline mainly due to VBP in China for TIS
products
SG&A:
Large increase compared with FY20 Q2 in which
expense usage was slow due to COVID-19
FY20 FY20Q2Q2OP Adj. OP©TERUMO CORPORATION

FY21 FY21Q2
Q2Adj. OP OP

FX:
Positive impact from flow mainly by EUR and
CNY. Small impact from stock

6 / 24This is the adjusted operating profit variance analysis for 2nd quarterstandalone, compared to the previous year.
Gross profit increment by revenue increase was 9.2 billion yen, and likethe year-to-date result, was due to contributions from revenue growth ateach company.
On the other hand, in addition to downward factors including progress ofthe planned production adjustment to normalize inventory levels, rising
wages and human resource fluidity have occurred throughout society in
the North America in the wake of the COVID-19 pandemic, leading todelays in securing resources at factories there. Reduced factory
operations in Vietnam, where COVID-19 impacts continue to occur, werealso a factor. With lockdowns eased in Vietnam, we are now seeing
improvement. The impact of increased freight costs continued in the 2nd
quarter as well.
2nd quarter standalone FX impact was a positive 1.8 billion yen.

6

Revenue by Region
FY21
Q2 YTD
Regional
breakdown

Revenue (100 M JPY)
Q2 YTDQ2

FY21 Q2 YTD
YoY%() FXN

FY19
Japan FY20
FY21

959
935
1,024

Europe

583
555
683

Americas

926
825
1,063

31%

China

244 108
203 101
301 147

49%
(36%)

9%

Asia and

11%

Others361 192
315 165
374
193

19%
(13%)

30%

20%

500
492
532
282
301
338

©TERUMO CORPORATION

466
462
519

10%

23%
(14%)

29%
(25%)

Comments (C&V: Cardiac & Vascular,
GH: General Hospital, TBCT: Blood & Cell Technologies)
Japan: Continuous double-digit growth in GH driven by Allianceand General hospital products. Continuous growth in C&V
driven by recovery of TIS and Neurovascular. Minor decline in
TBCT. QoQ (comparison of FY21Q2 to Q1) double-digit growthin syringes, pumps and TBCT, while C&V slightly lowered by
the COVID-19 resurgence
Europe: Continuous growth in all companies driven by TIS and
Neurovascular. QoQ decline in C&V due to the COVID-19
resurgence, acceleration in TBCT and GH driven by Bloodcenter solutions and Alliance
Americas: Continuous growth in all companies driven by TIS
and Neurovascular. QoQ decline in all companies, high singledigit QoQ growth in Latin America driven by TIS, TBCT and
Cardiovascular
China: Continuous growth in all companies driven by TIS.
Excluding the negative impact in FY20 1H from timing issue fororder from distributors in Neurovascular, 20%+ growth in threecompanies total. QoQ decline in all companies driven by lower
TIS sales due to high volume orders from distributors in Q1
Asia and Others: Slow recovery in all companies, due tolockdown etc. in some countries. QoQ solid growth in General
hospital products, steady growth in TBCT and minor decline inC&V

7 / 24

Next is revenue by region.
In each region, the recovery of TIS products has driven Cardiac and VascularCompany growth, for double-digit year-to-date growth compared to the previous
year.
In Japan, the Cardiac and Vascular Company was affected by COVID-19 for aslightly slower recovery, but the General Hospital Company performed well,resulting in 10% year-on-year growth, and 7% growth compared to FY2019.
Blood and Cell Technologies Company experienced a slight revenue decrease due
to impact from the timing of revenue.
In Europe, there was an overall recovery from COVID-19. TIS and
Neurovascular of the Cardiac and Vascular Company grew, as did blood center
solutions. In Neurovascular, Aspiration catheters showed strong growth.
In the Americas, North America was impacted by the COVID-19 Delta variant fora slight deceleration of growth in the 2nd quarter compared to the 1st; on theother hand, Central and South America accelerated after a slower recovery,
driving the whole. Neurovascular was steady in North America as well.

7

In China, results calmed following a temporary large purchase of TIS
products by distributors in the 1st quarter, but high growth continued
there. In Neurovascular, there was a reduction due to distributor ordertiming the previous year that made this yearʼs year-on-year increase
larger, but even when this is excluded, rapid growth at the high 20s level
continues.
In other parts of Asia some countries continue to experience COVID-19
impact, so the recovery pace remains slower.

7

C&V:

Significant revenue increase in all divisions with substantial recovery of procedures, especially in US and EU.
Compared with FY21 Q1, revenue decline due to the COVID-19 resurgence and expenses utilized as planned(100 M JPY)
Q2 YTD

Q2

Comments

Q2 YTD
Rev. YoY() FXN

1,726

1,943

TIS: Remaining COVID-19 impact in Asia and JP, significant recovery in US
and EU. QoQ (comparison of FY21Q2 to Q1) decline in China due to highvolume orders from distributors in Q1 as well as in EU and US due to the
COVID-19 resurgence, double-digit QoQ growth in Latin America and thesame level as Q1 in Asia

+274

+30%
(+24%)

948

Neurovascular: Significant recovery in the number of aneurysm treatments
in US and EU. Continuous high growth of aspiration catheters. QoQ decline
in EU and US, increase in China, Latin America and Asia

+102

+15%

Cardiovascular: Steady hardware sales generated by reopening of hospital
investments in addition to significant recovery of procedures in US and EU.
QoQ decline especially in US due to the COVID-19 resurgence, increase in
EU and Latin America driven by recovery of procedures and hardware sales+38

Vascular graft: Significant recovery in US and EU. QoQ decline especially in
US and EU due to the COVID-19 resurgence, increase in Latin America

+35

1,494

Revenue

Adj. OP%

821

508

472
320

Adjusted
Operating
Profit

841

-14%
+59%
(-11%)(+43%)

227

196

214
+9%
+1%

FY19 FY20 FY21

FY19 FY20 FY21

27%

27%

©TERUMO CORPORATION

21%

26%

24%

Adj. OP: The positive impact from product mix improvement surpassed thenegative impact from VBP of TIS products in China, lowered production level for
inventory level optimization and labor shortage in US factories. Expenses
utilized as planned in Q2

23%
8 / 24

I will now explain results by company, starting with Cardiac and Vascular.
Year-to-date TIS revenue increased 27.4 billion yen year-on-year; themost growth of any of the companyʼs businesses. COVID-19 delta variant
impact caused a temporary slowing of growth in North America, but
growth in Europe and China made contributions.
In Neurovascular, the number of cerebral artery treatment procedures
increased, with Aspiration catheter in particular growing well. The
neurovascular business made the second largest contribution in thecompany, with a 10.2-billion-yen increase in revenue year-on-year.
CV experienced a recovery of elective surgical procedures, as well as
continued steady demand for instruments.
Like the other businesses, Vascular received a boost from the recovery innumber of procedures, as well as further positive impact from enhanced
product lineup and expansion of sales area, leading to continued growth
above 30%.
In profit, price erosion, production adjustment, and the impact of human8resource shortages at factories in North America were all negative factors,
which were balanced by product mix improvement through increased
revenue. Adjusted operating profit on revenue was 26%.

8

GH:

Increase driven by pumps and daily use General hospital products.
Increase in both revenue and profit compared with FY21 Q1, driven by General hospital products(100 M JPY)
Q2 YTD

Q2

Comments

Q2 YTD
Rev. YoY() FXN

828

818

Revenue920+12%(+11%)

431+12%(+10%)

426

482

+13%

126

117

Adjusted
Operating
ProfitAdj. OP%134+15%(+16%)

74+25% 65(+24%)

70

FY19 FY20 FY21

15%

17%

14%

15%

15%

+50

Pharmaceutical: Mid single-digit growth in IV solutions despite a slow
demand recovery. Continuous double-digit growth in pain
management and adhesion barrier. QoQ low single-digit growth driven
by adhesion barrier+9

DM & consumer healthcare: Increase driven by thermometers andblood pressure monitors due to the special demand generated by
infection control and side effects of vaccines. QoQ double-digit growth
driven by thermometers+15

Alliance: 20%+ growth driven by CDMO business

+28

+7%

FY19 FY20 FY21

©TERUMO CORPORATION

General hospital products: Double-digit growth driven by a recovery ofdaily use products in JP, US, and Asia as well as increased demandfor pumps due to COVID-19. Special demand for infection control
products ran its course. QoQ (comparison of FY21Q2 to Q1) doubledigit growth driven by pumps and syringes for vaccines in JP, daily use
products in Asia

Adj. OP: Mitigated the negative impact from increased shipping and freight costby product mix improvement. SG&A expenses utilized as planned in Q2

15%
9 / 24

Next, the General Hospital Company.
In Japan, which accounts for 70% of total revenue, demand in the
medical device business for syringe pumps and infusion pumps inparticular drove double-digit growth. While infection prevention productdemand softened, high-added-value products like infusion lines anddisposables were drivers.
Pharmaceuticals saw a slower recovery and growth in infusion drugs,
similarly to the recovery in healthcare demand. However, pain
management and anti-adhesion grew in the double digits.
DM & Healthcare saw steady growth, with high demand forthermometers and blood pressure monitors in Healthcare in particular,
leading to mid-double-digit growth from the 1st to the 2nd quarter.
The Alliance business was also steady, maintaining growth at a high 20spercent level.
In profit, the improved product mix due to increased revenue absorbed
the negative impact of increased freight costs. Adjusted operating profit

9

on revenue was 15%

9

TBCT:

Continued increase in revenue and profit with product mix improvement and expense control.
Revenue increase in Blood center solutions compared with FY21 Q1(100 M JPY)
Q2 YTD

Q2

Comments

Q2 YTD
Rev. YoY() FXN

518

520

Revenue

582

+12%
(+7%)

275

272

299
+10%

Adjusted
Operating
ProfitAdj. OP%

67

89

118
+32%
(+18%)

41

50

58
+15%

FY19 FY20 FY21

FY19 FY20 FY21

13%

15%

©TERUMO CORPORATION

17%

20%

18%

Blood center solutions: Double-digit growth in whole blood collection
products with a recovery in US and EU. Solid sales of blood component
collection system in US and Asia. Fully mitigated the negative impact fromdecline of COVID-19 convalescent plasma demand as a whole. QoQ(comparison of FY21Q2 to Q1) high single-digit growth driven bycomponent collection and whole blood collection products in EU and JP+38

Therapeutic solutions: Double-digit growth in US and EU driven by
investment at hospitals to support higher number of procedures. QoQ
decline in US, increase in Latin America, China and the same level with Q1
as a whole+18

Cell therapy technologies: Despite the delay in deployment due to the
COVID-19 impact in FY20 1H, recovered in 2H and came back to thegrowth trajectory+6

Adj. OP: Positive effects from product mix improvement and expense control
surpassed negative impacts of the normalized product mix due to therecovery in whole blood collection and lowered operation in Vietnam factory
due to the COVID-19 resurgence19%
10 / 24

Next is Blood and Cell Technologies Company.
The blood center business saw good results especially in Europe and theAmericas, in both whole blood and blood component collection. There
were concerns about the impact of decreased demand for convalescentplasma used to treat COVID-19, but product mix improvement continued
to result in double-digit revenue growth of 12%.
Apheresis also saw recovery and growth in number of cases, whichspurred instrument demand toward double-digit growth. Cell processing
also saw growth in demand.
In profit, the downward impact of reduced Vietnam factory operations
was more than absorbed by the positive impact of improved product mix,
resulting in profitability continuing at 20% from the 1st quarter.

10

Upward Revision of Dividend Forecast
Stably increasing, and aim for the target dividend payout ratio of 30% over the mid tolong term
FY21 annual dividend: 32.0 JPY (increased by 2.0 JPY from the original forecast)Original Forecast

Revised Forecast

Dividend/share

30.0 JPY

32.0 JPY

Interim 15.0
Year-end 15.0

Interim 16.0
Year-end 16.0

Dividend payout ratio

24.7%

26.3%

FY21 Guidance Profit for the Year: 92 B JPY, EPS: 122 JPY
The interim dividend amount was decided as described in the news released on November 4, 2021, “Terumo Revises Interim Dividend
Distribution and Year-End Dividends Forecast for Fiscal Year Ending March 31, 2022”©TERUMO CORPORATION

11 / 24

As I mentioned in highlights at the beginning, we will not revise ourguidance at this time; however, we plan to increase the dividend to 32
yen from the previous guidance of 30 yen. Therefore, the interim
dividend will be increased by one yen to 16 yen, as announced today.

11Major Topics• Resolved the selection of the new “Prime Market” segment on the Tokyo
Corporate

Stock Exchange, Inc.

• Has received “GOOD DESIGN AWARD” for twenty-six consecutive years

Cardiac &Vascular• Released final results of MASTER DAPT, a trial on abbreviated DAPT for
patients at high risk of bleeding• Launched the stent graft for thoracic aortic aneurysm “RelayPro” in US• Released the blood glucose management application

GeneralHospital

Blood glucose
management application“MEDISAFE Data Share”(smart phone version image)“MEDISAFE Data Share”• Launched the 100th anniversary limited thermometer in JP

Blood & Cell
Technologies

High condensed liquid nutrition“PG series” “F2 series” andfour other products won the award

Stent graft for
thoracic aortic aneurysm“RelayPro”• First-of-its-kind study published on the positive health economic impact ofovercoming blood shortages to treat maternal bleeding in sub-Saharan Africa• Opened manufacturing facility in Costa Rica

©TERUMO CORPORATION

100th anniversary thermometer“S100”

12 / 24

Lastly, the main topics for the 2nd quarter.
I will introduce one of our ESG efforts: Improvement of the bloodtransfusion environment in Africa. In Sub-Saharan Africa, the cause ofhalf of maternity deaths is blood loss after delivery. This complication canbe prevented when transfusions are performed appropriately and safely,
and Terumo undertook these efforts in cooperation with the government.
The study confirmed the impact of this loss of life on the countries as awhole.
This concludes my overview of the earnings results. Thank you

12Reference©TERUMO CORPORATION

13 / 24

13

FY21 New Product Pipeline
Category
Coronary

Oncology

Neurovascular

Vasculargraft

Products
Drug-eluting stent

Region Launch

Category

JP

Biodegradable drug-eluting
microsphere

EU

Peripheral embolization coil

JP

Peripheral embolization plug

US

Generalhospital
products

Launched
Pharmaceutical

Flow diverter

EU, US

Balloon guide catheter

EU, US

Coil assist stent

EU, USEU:
Launched

Stent graft for thoracic aortic
aneurysm

US

Launched

Surgical hybrid stent graft

US

Stent graft for abdominal aortic
aneurysm

JP

DM andconsumerhealthcare

Launched
Blood and cell
technologies©TERUMO CORPORATION

Products

Region Launch

Infusion pump

JP

Small size syringe pump

JP

FN syringe (16mm needle)

JP

Launched

Flumazenil I.V. infusion

JP

Launched

Sterile connecting deviceJP

Launched

GelclairJP

Continuous glucose monitoring system

JP

Launched

Insulin patch pumpEU

Launched

100th anniversary thermometerJP

Launched

Non-contact data link thermometerJP

Automated blood processing system

GlobalValue-added services

GlobalLaunched

14 / 24

14

Revenue by Segment and Region©TERUMO CORPORATION

15 / 24

15

Quarterly Trend of Revenue and Operating Profit
Revenue: Increase by +14% YoY and by +12% against FY19 Q2. Large increase in C&V by +13% against FY19 Q2 with positive
impact of FX such as EUR
Operating Profit: In addition to the negative GP impact of VBP in China and lowered production level, decline driven by labor
shortage in US factories, lowered operations in Vietnam factories due to the COVID-19 resurgence, and increased cost of shippingand freight. Expenses utilized as planned especially in US, EU, and JP(100 M JPY)

1,600
1,400

1,729

1,717

1,800

1,629 1,653

1,548 1,520

1,525

1,588 1,652

1,313

1,200

TBCT (Revenue)

1,000

GH (Revenue)

800

C&V (Revenue)

600

Total (Operating Profit)

400
200
0

292

181

362

300

FY19 FY20 FY21
Q1

©TERUMO CORPORATION

238

296

271

FY19 FY20 FY21
1

Q2

334

244

FY19 FY20 FY21
1

Q3

231

FY19 FY20 FY211Q416 / 24

16

P&L (Quarterly Results)(100 M JPY)

Revenue

FY20 Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)FY21 Q1(Apr-Jun)

Q2(Jul-Sep)

1,520

1,653

1,652

1,717

1,729

Gross Profit

816 (53.7%)

908 (54.9%)854 (51.7%)

943 (54.9%)

920 (53.2%)

SG&A Expenses

458 (30.2%)447 (27.1%)

488 (29.5%)465 (27.1%)

490 (28.4%)

R&D Expenses

119 (7.8%)

128 (7.7%)

132 (8.0%)

117 (6.8%)

130 (7.5%)

Other Income
and Expenses

-1

2

-2

1

-3

Operating Profit

238 (15.6%)

334 (20.2%)

231 (14.0%)362 (21.1%)

296 (17.1%)

Adjusted
Operating Profit

296 (19.5%)

372 (22.5%)274 (16.6%)

402 (23.4%)

339 (19.6%)

USD

106 JPY

105 JPY

106 JPY

110 JPY

110 JPY

EUR

124 JPY

125 JPY

128 JPY

132 JPY

130 JPY

Average
Rate©TERUMO CORPORATION

17 / 24

17

Operating Expenses (Quarterly Results)(100 M JPY)

FY20 Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)FY21 Q1(Apr-Jun)

Q2(Jul-Sep)

232
31
36
49
110
458

231
35
38
47
97
447

240
43
37
49
119
488

249
30
38
48
99
465

249
40
39
50
112
490

(SG&A Expenses%)(30.2%)(27.1%)(29.5%)(27.1%)(28.4%)

R&D Expenses

119

128

132

117

130

(R&D Expenses%)(7.8%)(7.7%)(8.0%)(6.8%)(7.5%)

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation & Amortization
OthersSG&A Expenses Total

Operating Expenses Total(Operating Expenses%)
Average Rate©TERUMO CORPORATION

USD
EUR

578

575

620

581

621

(38.0%)(34.8%)(37.5%)(33.9%)(35.9%)

106 JPY
124 JPY

105 JPY
125 JPY

106 JPY
128 JPY

110 JPY
132 JPY

110 JPY
130 JPY

18 / 24

18

Operating Expenses (YTD and Quarterly Results)(100 M JPY)
FY20 Q2YTD
Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation &Amortization
OthersSG&A Expenses Total(SG&A Expenses%)

R&D Expenses(R&D Expenses%)

Operating Expenses Total(Operating Expenses Total%)©TERUMO CORPORATION

456
51
69

FY21 Q2
YTD

498
70
77

YoY

YoY%

YoY%
(FXN)

FY20 Q2

FY21 Q2

YoY

YoY%

42
19
9

9%
38%
12%

5%
34%
9%

232
31
36

249
40
39

17
9
3

7%
31%
9%

95

98

3

3%

0%

49

50

1

2%

188
859

211
955

23
96

12%
11%

9%
7%

110
458

112
490

2
32

1%
7%

11

9%

43

7%

(30.3%)

231(8.2%)

1,090(38.5%)(27.7%)

247(30.2%)

16

7%

4%

(7.2%)

1,202

119(7.8%)

11210%(34.9%)

7%578(38.0%)(28.4%)

130(7.5%)

621(35.9%)

19 / 24

19

Adjusted Operating Profit: Adjustments(100 M JPY)
FY20 Q2 YTD

FY21 Q2 YTD

418

659

238

296

Adjustment 1. Amortization of acquired
intangible assets

72

79

37

40

Adjustment 2. Non-recurring profit or loss

23

4

21

3

513

741

296

339

Operating Profit

Adjusted Operating Profit

FY20 Q2

FY21 Q2<General examples of adjustment items>• Acquisition related cost
• Lawsuit settlement• Impairment loss
• Restructuring loss
• Nonlife insurance income• Loss on disaster• Other one-time profits & losses©TERUMO CORPORATION

Main items in
Adjustment 2. Non-recurring profit or loss
Business reorganizing cost

FY21 Q2YTD

FY21 Q2

4

3

20 / 24

20

CAPEX, Depreciation and R&D Expenses
FY18

FY19

FY20

FY21 Q2
YTD(100 M JPY)
FY21
Guidance

CAPEX
Depreciation

608
440

895
477

772
484

324
256

850
530

Amortization of acquired intangible assets
Others

146
294

157
320

150
334

71
185

155
375

CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not included in Depreciation

FY21 Q2 YTD (32.4 B JPY): Continued investment mainly for TIS, Neurovascular, Alliance, and Blood & Cell
Technologies in production capacity and space, R&D as well as IT infrastructure (SAP)FY21 guidance (85.0 B JPY): Other than above, investment for plasma collection and production facilities for
vaccine syringes, etc. Controlling investment considering FY21 performance

FY18

R&D Expenses©TERUMO CORPORATION

FY19

477

506

FY20

491

FY21 Q2
YTD

FY21
Guidance247

529

21 / 24

21

Cash Flows (Q2 YTD)
Operating CF
+667
284

653

Depreciation
andamortization

Investing & Financing CF
-646

168
Incometaxes

101Working
capital324
CAPEX

Profitbefore tax

105
Debt
repayment&
redemptionof bonds

113
Dividends©TERUMO CORPORATION

103
Others

2,029

2,008

Cash atthe end of
FY20(100 M JPY)CAPEX = C.i.P. record basis
Cash at the end of each period is equal to “cash and cash equivalents” on B/S

Cash atthe end of
FY21 Q2

22 / 24

22

Cash Flows (Q2)
Operating CF+368
58
Income
taxes

144

293

Depreciation
andamortization(100 M JPY)

Investing & Financing CF-206
11
Working
capital

157
3
CAPEX

Debt
repayment

47
OthersProfitbefore tax
2,029
1,867

Cash atthe end of
FY21 Q1©TERUMO CORPORATIONCAPEX = C.i.P. record basis
Cash at the end of each period is equal to “cash and cash equivalents” on B/S

Cash atthe end of
FY21 Q2

23 / 24

23

Foreign Exchange Sensitivity
Annual impact of 1 JPY depreciation(100 M JPY)

USD

EUR

CNY

Revenue17

835

Adjusted Operating Profit

0

5

15

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

Adjusted Operating Profit©TERUMO CORPORATION

-1

10

EMEA

Asia

EUR

OthersCNY

Others

65

13

23

36

24 / 2424

25