Financial Results for the Fiscal Year
Ended March 31, 2024 (FY2023)

May 14, 2024

Jin Hagimoto
Chief Financial Officer
Terumo Corporation

I’m Hagimoto, Terumo's CFO. I would like to present an
overview of the year-end financial results for the fiscal year
ending March 31, 2024.

1

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. Information about products (including products currently indevelopment) which is included in this material is not intended to constitute anadvertisement or medical advice.

©TERUMO CORPORATION

2 / 142

Highlights
FY23 Results
Record highs in revenue, operating profit, and net income
Revenue growth driven by Americas and Europe, +7% companywide (excluding
exchange rate effects)
Operating profit growth outpaced sales growth, +14% companywide (excluding
exchange rate effects)

FY24 GuidanceContinued global growth, revenue growth +7% (excluding exchange rate effects)
Operating profit up 16% (excluding exchange rate effects) due to expansion ofhighly profitable businesses©TERUMO CORPORATION

3 / 14

These are the highlights of this year's financial statement.
In FY23, revenue, operating profit, and net income allreached record highs.
Revenue growth was +7% excluding exchange rate effects,
driven by growth in the U.S. and Europe.
Operating profit growth outpaced sales growth, increasing by+14% when excluding exchange rate effects.
Net income surpassed 100 billion yen for the first time toreach 106.4 billion yen.
For FY24, we expect continued growth globally, with revenue
growth of +7% excluding exchange rate effects.
Operating profit is expected to increase by +16%, excluding
exchange rate effects, due to the expansion of highly
profitable businesses.
Next slide, please.

P&L
Revenue: Record high. TIS, blood center business, Neuro, and Vascular led with double-digit growth
Operating profit: Record high. Steady progress in profit improvement measures. SG&A expenses increased
due to increased headcount to expand sales of therapeutic devices in North America
100M JPY
Revenue
Gross Profit（%）

SG&A Expenses（%）

FY22 Q4 YTD

FY23 Q4 YTD Change

8,202
4,174

9,219
4,792

(50.9%)(52.0%)

2,383

2,759

(29.1%)(29.9%)

616

691

（%）

(7.5%)(7.5%)

Other Income and Expenses
Operating Profit

-2
1,173

59
1,401

(14.3%)(15.2%)

1,380

1,568

(16.8%)(17.0%)

R&D Expenses（%）

Adjusted Operating Profit（%）

Profit before Tax（%）

Profit for the Year

1,161

1,408

(14.2%)(15.3%)

893

1,064

7%
9%

16%

10%

12%

8%

19%

14%

14%

8%

21%
19%

(10.9%)(11.5%)（%）
Average exchange rate (USD/EUR) 135JPY/141JPY 145JPY/157JPY©TERUMO CORPORATION

Change excluding
FX impact

12%15%

FY22 Q4

FY23 Q4

2,022
990

2,389
1,243

(49.0%)(52.0%)

597

737(29.5%)(30.9%)

160

199(7.9%)(8.3%)

5
238

39
346

(11.8%)(14.5%)

284

371(14.1%)(15.5%)

240

351(11.9%)(14.7%)

191

265(9.5%)(11.1%)

Change
18%
26%
23%
25%
651%
45%
30%
46%
38%

132JPY/142JPY 149JPY/161JPY

4 / 14

These are our P&L results.
Sales revenue for the full year exceeded 920 billion yen, arecord high. Cardiac & Vascular's TIS, neuro and vascular, as
well as the Blood and Cell Technologies blood center
business led with double-digit growth.
Operating profit also reached a record high of 140.1 billion
yen.
The increase in SG&A expenses due to an increase inemployee headcount to expand therapeutic devices sales inNorth America was more than offset by the steady progressof profit improvement measures and the revision of pricing
policy.
Net income for the year reached a record high of 106.4 billionyen.

4Gross margin, operating profit margin, and adjusted
operating profit margin for the full year all improved from theprevious year. Next slide, please.

4OP Variance Analysis (Q4): Profitability improvements as planned(100M JPY)

Price
+35

G/P
incrementbysales
increase

Gross Reimbur- SG&A
margin sement increase R&D
increase
price

G/P increment by sales increase:
TIS, Neuro led the driver C&V

FX

Gross margin:
Mitigation of inflationary effects, and cost
reduction effects+6

Price:
Global promotion of price revision
SG&A increase:
Increased sales force for expansion oftherapeutic devices sales in US

FY22 Q4 FY22 Q4
OP
Adj. OP©TERUMO CORPORATIONFY23 Q4 FY23 Q4
Adj. OPOP

FX:+3.6B JPY flow impact; -2.6B JPY stock impact

5 / 14This is an analysis of the year-on-year change in for the threemonths of Q4.
First, the gross margin effect was due to the absence of onetime expenses in the current quarter that were recorded in
the same quarter of the previous year, as well as thecontinued easing of inflation and the effects of cost-cutting
measures that continued in Q3.
In pricing, the effect of the pricing policy review, which was
expanded in the second half of the year, is being felt.
The increase in SG&A expenses is mainly due to theincrease in employee headcount to expand sales oftherapeutic devices such as neuro and stent grafts in North
America.
Next slide, please.

5

OP Variance Analysis (Q4 YTD): As planned in all areas(100M JPY)

Price
Gross
marginG/Pincrementbysales
increase

G/P increment by sales increase:
Drivers were C&V and TBCT

+100

Reimbur- SG&A
sement increase R&D
increase
price

FX

Gross margin:
One-time costs offset by inflation mitigation, cost
reductions, and product mix improvements+27

Price:
Global promotion of price revision
SG&A increase:
Increased sales force for expansion of therapeutic
devices sales in US
FX:+10.2B JPY flow impact; -5.2B JPY stock impact

FY22
FY22
Q4 YTD Q4 YTD
OP
Adj. OP©TERUMO CORPORATION

FY23
FY23
Q4 YTD Q4 YTD
Adj. OPOP

6 / 14This is an analysis of change in profit for the full year.
Gross profit growth due to higher sales exceeded our
expectations as a result of strong performance in Cardiac &Vascular and Blood and Cell Technologies.
The gross profit margin effect was in line with the originalplan due to the progress of profit improvement measures andthe effect of product mix improvement, as well as cost
reduction measures and easing inflation.
Turning to increased SG&A expenses, we have increased
employee headcount to expand sales of therapeutic devices
in North America, which has led to sales growth.
The breakdown of "foreign exchange effects" was +10.2
billion yen in flow, and -5.2 billion yen in stock.
Next slide, please.

6

Revenue by Region: Therapeutic devices strong in Americas, Europe: Asia drove high growth rate
C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular

Q4 YTD

Americas

FY21
FY22
FY23

2,061
2,074
2,111

23%

Europe

1,404
1,600
1,915

21%

China

594
719
794

Asia and
Others

770
943
1,118

9%
12%

©TERUMO CORPORATION

Comments( ) FX Neutral

Q4

592

2,204
2,866
3,280

Japan

36%

FY23 Q4 YTD
YoY change

Revenue (100M JPY)

FY23 Q4 YTD
Regional
breakdown

742
898
511
503
524

364
414
525
147
153
194
184
209
249

14%
(8%)

C&V’s Neuro / Vascular, TBCT’s blood center
business grew double digits even whenexcluding exchange rate effects

2%

All companies grew. Vascular performed
favorably at C&V, PS at TMCS, and the blood
center business at TBCT

20%
(8%)

Double-digit growth in Neuro / Vascular in C&V,
even when excluding exchange rate effects;
sustained growth in the TBCT blood center
business

10%(8%)

All companies grew. C&V was led by doubledigit growth in TIS. TBCT’s blood center
business and TMCS also performed well, withdouble-digit growth

19%
(13%)

All companies continued to grow. Double-digit
growth in TIS, CV, blood center business, andapheresis therapy, even when excluding
exchange rate fluctuations

7 / 14This is revenue by region. Overseas sales drove growth,particularly in the Americas and Europe.
In the Americas, sales grew 8% excluding exchange rate
effects due to strong sales of therapeutic devices such asneuro and vascular-related products and double-digit growthin the blood center business.
In Japan, despite negative factors such as a decrease insales due to the divestiture of the nutrition business and adrop in demand for thermometers, sales were higher than in
the previous year, driven by sales in the fields of Cardiac &Vascular and Blood and Cell Technologies.
In Europe, growth was +8% excluding exchange rate effects
as a result of continued strong sales of therapeutic devices
such as neuro and stent grafts.

7

In China, while there was some impact from restrainedpurchasing by distributors as access products were subject
to VBP. TIS maintained double-digit growth even whenexcluding exchange rate effects. The new prices will not
begin to apply until FY24.
Emerging economies such as Asia and the Middle East led
the way in terms of growth. Growth continued in allcompanies, particularly in the Cardiac & Vascular's TIS andCardiovascular businesses and in Blood and Cell
Technologies’ blood center business and apheresis therapy.
Next slide, please.

7

C&V: Continued global demand, driven by double-digit growth in Vascular and Neuro（100M JPY）

(C&V: Cardiac and Vascular, TIS: Interventional Systems)

Q4 YTD

Q4

Comments( ) FX Neutral

4,806

TIS:

5,557

Access and therapeutic demand expanded globally.
Volume-based procurement (VBP) in China caused
distributors to hold off from buying; however
double-digit growth continued+451

Neurovascular:

Stroke device market share recovered in US andEurope. China decreased due to return to normal
after FY22 initial inventory buildup by new
distributors; demand remains steady+122

Cardiovascular:

Japan hardware demand returned to normal, but
US and Asia sales stayed strong+76

VascularGraft:US and Europe were drivers. Hybrid product andstent graft sales expansion continued

+102

3,971
Revenue

16%(9%)

1,027 1,217

1,480
22%

932

1,122

Adjusted
Operating
ProfitProfit%

1,239

10%
(7%)

209

286

319

Q4 YTD
YoY

12%

FY21 FY22 FY23

FY21 FY22 FY23

23%

20%

23%

22%

©TERUMO CORPORATION

23%

Profit:22%

Increased sales and profitability improvement.
SG&A increased due to sales force expansion forgrowth of therapeutic devices sales in US

8 / 14

I will next review business performance by company. First is
the Cardiac & Vascular Company.
Excluding exchange rate effects, revenue grew 9%,
exceeding the full-year forecast.
Its Vascular and neuro businesses performed well globally,
particularly in the Americas and Europe.
Although there have been supply issues with some accessproducts as well as the Neuro businesses’ stroke device, weare steadily recovering market share.
Vascular also continues to expand sales of hybrid products
and stent grafts.
Profits increased due to higher revenues and progress withprofit-improvement measures.
Next slide, please.

8

Increased revenue and profit despite impact of Nutrition businessdivestiture, return to normal of thermometers

TMCS:（100M JPY）

(TMCS: Medical Care Solutions)

Q4 YTD

Q4

Comments( ) FX Neutral

1,853 1,917
Revenue

1,976

3%
1%
(1%)
(-0%)

466

462

503
3%
9%

236
148

Adjusted
Operating
ProfitProfit%

198
33%
(31%)
27%
(25%)

43

22

FY21 FY22 FY23

13%

9%

8%

10%

5%

HCS
Hospital Care
Solutions:

In Japan, the company is rebounding fromthe decline in sales resulting from thedivestiture of its nutrition business by revising
its pricing policy and strong performance ininfusion sets. Overseas sales were solid,
driven by Asia and Latin America

LCS
Life Care
Solutions:

Thermometer demand returned to normal.
Japan blood glucose self-measurement
product sales down due to stiffer competition-18

PS
Pharmaceutical
Solutions:

The CDMO business performed well in
Japan

+29

Profit:Substantial increase due to ease of inflation
impact and price policy revision effects

+48

38
69%
72%

FY21 FY22 FY23

©TERUMO CORPORATION

Q4 YTDYoY

8%
9 / 14

Next is TMCS, Terumo Medical Care Solutions.
Negative factors such as a decrease in sales due to the saleof the nutrition business and a lull in demand forthermometers were offset by the effects of revised pricing
policies and the easing of inflation, resulting in an increase insales and a significant increase in profit.
Pharmaceutical Solutions is also progressing according toplan, and the profit margin for TMCS as a whole improved by
2 percentage points.
Next slide, please.

9

TBCT: Strong blood center business drove large profit increase（100M JPY）

(TBCT: Blood and Cell Technologies)

Q4 YTD

Q4

Comments

Q4 YTD
YoY( ) FX Neutral

1,476

Blood Center
Solutions:

Whole blood collection-related products
performed well in Asia and Americas+183

Therapeutic
Solutions:

Cell collection demand expanded in US.
Therapeutic apheresis for hospitals
strong in Asia

+44

11%
18%

Cell Therapy
Technologies:

Minus YoY due to sale of a business.
Cell therapy investment expansion led tosteady trend in cell processing system
sales

25

Profit:Significant increase in profit due to higher
sales revenue. The positive effects of thepricing policy and the transfer of production
to Costa Rica also contributed. Q4 recorded
a one-time expense for impairment ofintangible assets

1,683

1,206
Revenue
13%
14%
(8%)

304

208
112

Adjusted
Operating
ProfitProfit%

342

405

164
47%
7%
(52%)
(11%)

37

-18

-16%

FY21 FY22 FY23

FY21 FY22 FY23

17%

12%

8%

10%

©TERUMO CORPORATION

-5%

6%

-21

10 / 14

Next is TBCT, Blood and Cell Technologies.
Excluding exchange rate fluctuations, net sales increased by
8% due to the strong performance of existing businesses,
especially the Blood Centers business.
Profit increased significantly as the effects of the revised
pricing policy and the transfer of production to Costa Rica
offset the one-time intangible asset impairment charge
recorded in Q4. The profit margin also improved by 2
percentage points.
Both sales revenue and profit exceeded full-year forecasts.
Next slide, please.

10

FY24 Guidance
Revenue: Continued growth led by Blood & Cell Technologies, +7% growth (excluding exchange rate effects)
Operating profit: Double-digit growth due to expanded sales of high-profit products and further strengthening of
profitability improvement measures
FY23 Actual

Amount (100 M JPY)

FY24 Guidance

YoY%

FX Neutral YoY%

Revenue

9,219

9,800

6%

7%

Operating Profit (OP %)1,401 (15.2%)

1,650 (16.8%)

18%

16%

Adjusted Operating Profit (Adj. OP %)1,568 (17.0%)

1,850 (18.9%)

18%

16%

Profit for the Year

1,064

1,220

15%

ROIC

7.1%

7.6%

ROE

8.7%

8.9%

145JPY/157JPY

Exchange Rate (USD/EUR)

145JPY/155JPY( ) FX Neutral

FY24 by Company(100 M JPY)

Revenue

Adjusted Operating Profit

Adjusted
Operating Profit％
24%

AmountYoY%

Amount

YoY%

C&V

5,818

5% (5%)

1,415

14%

TMCS

2,100

6% (6%)

235

19%

11%

TBCT

1,880

12% (12%)

235

43%

12%

(C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies )©TERUMO CORPORATION

11 / 14

Next is the forecast for FY24.
Revenue growth is expected to continue across the company,
particularly in Blood & Cell Technologies, with a forecast of+7% across the company excluding the exchange rate effects.
Operating profit is expected to grow +16% excluding
exchange rate effects, significantly outpacing sales growth.
We aim to improve our operating margin by 1.6 percentage
points, to 16.8%, by focusing on company-wide measures toimprove profitability while steadily increasing the number of
each company's high-profit growth drivers.
We will continue our efforts to improve capital efficiency.
Next slide, please.

11

Profit Variance Analysis (FY24 Guidance)(100 M JPY)

G/P increment by sales increase:
Continuation of growth mainly in Blood & Cell
Technologies and C&V

Price
Gross
margin

FX
SG&A

R&D

Gross margin:
Continuation of profit improvement measures,and effects of product mix improvement

G/P
incrementby salesincrease

Price:
Continuation of pricing policy, including impact of
VBP in China
SG&A increase:
Increase due to business expansion

FY23 FY23
OP Adj. OP©TERUMO CORPORATIONFY24 FY24
Adj. OP OP

12 / 14

These are factors affecting profit in the FY24 forecast.
Under "Increase in gross profit due to sales growth," weexpect an increase in sales at all companies, led by the
Cardiac & Vascular company.
Gross margin effect includes the effect of cost reduction
measures and business mix improvement, as well as theimpact of inflation.
Among cost reduction measures, we will continue to optimize
and improve the efficiency of our production system, and wewill promote projects to further improve efficiency at the
Ashitaka Plant, which serves as the backbone of TIS.
Although we are making some conservative assumptions,such as high raw material prices and high electricity costs,
inflation is expected to be almost flat for the full year versus
FY23.

12

In terms of prices, we have conservatively factored in theimpact of lower sales and profits from VBP in China, but we
expect this to be offset by further revisions to pricing policies
in existing businesses, in addition to the positive impact ofprice increases implemented in FY23, the effects of which
will be felt in FY24.
SG&A expenses are expected to increase at a healthy rate inline with business expansion. At the same time, we will
review head office expenses by promoting a company-widecross-functional cost optimization project for support
functions.
Next slide, please.

12

Assumptions Underlying FY24 Guidance(C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies )C&V• Despite the impact of volume-based procurement (VBP) in China and official price revisions inJapan, this is expected to be covered by all businesses, and sales are expected to grow
• Profitability improving due to continued profit improvement measures andthe effect of improved product mixes

TMCS• Despite assumptions of raw material cost increases, 6% sales growth is expected due to priceactions and double-digit growths in the Pharmaceutical Solutions business• Impacts on performance from the first overseas CDMO project (to be closed soon) and the Antibody
for Alzheimer’s disease are limited.

TBCT• Assumes acceleration of plasma innovation business rollout andstable growth in core business• Profitability improvement of 2 percentage points total©TERUMO CORPORATION

13 / 14

These are the assumptions we are making for the FY24
guidance, by company.
At Cardiac & Vascular, the impact of the decrease in sales
and profit due to VBP in China and the official price revisionin Japan has already been factored into the planned figures.
However, this negative impact will be covered by all
businesses, and sales are expected to grow for the Company
as a whole. Profits are expected to grow faster than sales
growth due to continued profit improvement measures andthe effects of product mix improvements.
For TMCS, while we expect raw material price increases, wewill bounce back from these as a result of price revisions anddouble-digit growth in the Pharmaceutical Solutions business,and expected to achieve +6% sales growth and further
improvement in profit margins.

13The first overseas CDMO project and Alzheimer’s drug, bothof which are slated for this fiscal year, are expected to have
limited impact on FY24 results.
TBCT's losses in the Plasma Innovation business will narrow
due to the accelerated rollout of Rika.
For the core business, we expect stable growth continuing on
from FY23.
As a result, the Company as a whole expects to improve its
profit margin by 2 percentage points.
Next slide, please.

13Dividend Proposal: Continuous increase per shareholder return policy
Shareholder return policy: Continue stable increase in dividend, aiming for 50% total payout ratio

26
Unit: Yen
Figures in parentheses represent payout ratio

22
20
17

12.5
(19.3%)

FY17

13.5

14

(24.8%)(24.6%)

FY18

FY19

14.5

(31.6%)(30.8%)(33.6%)(28.9%)(28.3%)

FY20

FY21

FY22

FY23

FY24
Guidance

FY17-FY23: Dividend amounts per share are adjusted based on the number of shares issued and outstanding as of 1st April 2024.

©TERUMO CORPORATION

14 / 14This is the last slide.
The Company executed a 2-for-1 stock split of its common
stock in April 2019 and again in April 2024. The graphs andfigures on this page reflect these stock splits.
Our dividend policy will remain unchanged, and stabledividend increases will be implemented.
The annual dividend for FY23 is expected to be 22 yen per
share, with a payout ratio of 30.8%.
For FY24, we expect to increase the dividend by 4 yen, to 26
yen per share, achieving a payout ratio of 31.6%.
Together with ongoing annual dividend increases, we aim toachieve a total return ratio of 50%.
This concludes my explanation. Thanks for listening.

14

Reference©TERUMO CORPORATION

15 / 1415

Revenue by Segment and Region©TERUMO CORPORATION

16 / 14

Quarterly Revenue Trend
FY23 Q4: +18% vs. FY22 Q4 -0% vs. FY23 Q3(100M JPY)
3,000

2,500

2,000
TBCT

1,500

TMCS
C&V

1,000

500

0
FY19 FY20 FY21 FY22 FY23
Q1

©TERUMO CORPORATION

FY19 FY20 FY21 FY22 FY23

FY19 FY20 FY21 FY22 FY23Q2Q317 / 14

FY19 FY20 FY21 FY22 FY23
Q4

P&L (QoQ)(100M JPY)

Revenue

FY22 Q4

FY23 Q1

Q2

Q3

Q4

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

2,022

2,153

2,286

2,391

2,389

Gross Profit

990 (49.0%)

1,098 (51.0%)

1,185 (51.8%)

1,266 (52.9%)

1,243 (52.0%)

SG&A Expenses

597 (29.5%)

651 (30.2%)664 (29.0%)

707 (29.6%)

737 (30.9%)

R&D Expenses

160 (7.9%)

154 (7.2%)

164 (7.2%)

173 (7.3%)

199 (8.3%)

Other Income and Expenses

5

3

12

5

39

Operating Profit

238 (11.8%)296 (13.8%)368 (16.1%)

390 (16.3%)

346 (14.5%)

Adjusted Operating Profit

284 (14.1%)

345 (16.0%)

411 (18.0%)

441 (18.5%)

371 (15.5%)

132JPY
142JPY

137JPY
150JPY

145JPY
157JPY

148JPY
159JPY

149JPY
161JPY

Quarterly
Average Rate©TERUMO CORPORATION

USD
EUR

18 / 14

18

SG&A (QoQ)(100M JPY)

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation and Amortization
OthersSG&A Expenses(%)

R&D Expenses
(%)

Total
(%)
Quarterly Average Rate©TERUMO CORPORATION

FY22 Q4(Jan-Mar)FY23 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)

307
45
44
58
143
597
(29.5%)
160(7.9%)
757(37.4%)

336
49
47
58
161
651
(30.2%)
154(7.2%)
805(37.4%)

349
44
46
61
164
664
(29.0%)
164(7.2%)
828(36.2%)

371
54
49
65
168
707
(29.6%)
173(7.3%)
881(36.8%)

373
54
51
66
192
737
(30.9%)
199(8.3%)
937(39.2%)

USD

132JPY

137JPY

145JPY

148JPY

149JPY

EUR

142JPY

150JPY

157JPY

159JPY

161JPY19 / 14

19

SG&A (YoY)(100M JPY)
FY23 Q4
YTD

YoY

YoY%

YoY%
excluding
FX impact

1,233
187
184

1,429
201
193

197
14
9

16%
8%
5%

234

250

16

545
2,383

685
2,759

140
376

(29.1%)(29.9%)

FY22 Q4
YTD

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation andAmortization
OthersSG&A Expenses(%)

R&D Expenses
(%)

Total
(%)

©TERUMO CORPORATION

616

691

(7.5%)(7.5%)

2,999

3,450

(36.6%)(37.4%)

74

451

FY22 Q4

FY23 Q4

YoY

YoY%

9%
3%
-0%

307
45
44

373
54
51

66
9
7

22%
21%
16%

7%

3%

58

66

8

13%

26%
16%

20%
10%

143
597

192
737

49
140

34%
23%

(29.5%)(30.9%)

39

25%

179

24%

12%

15%

8%

9%

160

199

(7.9%)(7.3%)

757

937(37.4%)(39.2%)

20 / 1420

Adjusted Operating Profit: Adjustment Items(100M JPY)
FY22 Q4 YTD

FY23 Q4 YTD

1,380

1,568

284

371

-188

-200

-44

-54

Adjusted Operating Profit
Adjustment 1. Amortization of
acquired intangible assets
Adjustment 2. Non-recurring profit or loss

Operating Profit

FY22 Q4

FY23 Q4

-19

33

-2

29

1,173

1,401

238

346

<General examples of adjustment items>• Acquisition related cost

• Impairment loss

• Nonlife insurance income• Restructuring loss

• Loss on disaster• Other one-time profits & losses

Adjustment 2. Non-recurring profit or loss

FY22 Q4 YTD

FY23 Q4 YTD

-25

-23

-36

-

39
4

13
34
10

Restructuring loss
Goodwill amortization related to sale of part ofcell processing businessProfit from sale of nutrition businessProfit from sale of Olympus Terumo Biomaterials stock
Litigation-related gains (losses)
Others©TERUMO CORPORATION• Lawsuit settlement

21 / 1421

CAPEX, Depreciation and Amortization, R&D Expenses
FY20
CAPEX
Depreciation and Amortization
Amortization of
acquired intangible assets
OthersFY21FY22(100M JPY)
FY24
FY23
Guidance(100M JPY)

772
484

692
532

758
635

784
702

930
770

146

161

188

200

200

338

371

447

502

570

CAPEX = Construction in progress record basis, lease depreciation (IFRS16) is not included in Depreciation

FY23 CAPEX (78.4B JPY): Mainly TIS, Neurovascular, and Pharmaceutical Solutions, continued investment in IT, including increased
production facilities for Blood and Cell Technologies Company, raw material plasma collection, R&D investment, and core system(SAP); construction of a new building in the Kofu Plant to strengthen the production system for CDMO (contracted development andmanufacturing) and other services
FY24 CAPEX (93.0B JPY): Including the projects mentioned above, investments are planned for production capacity expansion andnew growth drivers.

FY20
R&D Expenses©TERUMO CORPORATION

491

FY21

FY22

518

616

FY23
691

FY24
Guidance715

22 / 1422

Cash Flows (Q4 YTD)
Operating CF+1,463

Investing & Financing CF-1,288(100M JPY)

-457
767
Incometaxes, etc.

1,408

1,873

Depreciation
andamortization-256

Working
capitalgains andlosses

-784

CAPEX

Profit before
tax

Cash at the endof FY22©TERUMO CORPORATION-100
Redemptionof bonds

-111
Share
buy back-320

28

Dividends

136
Others
2,049

CAPEX = Construction in progress record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

Cash at the endof FY23

23 / 1423

Cash Flows (Q4)
Operating CF
+551

206

351

Depreciation
andamortization

Investing & Financing CF
-139
-75

Incometaxes, etc.

(100M JPY)

69
Working
capital188
gains andlosses

-270
CAPEX

-32

163

Share
buy back

Others

163

Profit before
tax

156

183

2,049

1,636

Cash at the endof FY23 Q3©TERUMO CORPORATIONCAPEX = Construction in progress record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

Cash at the endof FY23 Q4

24 / 1424

FY23 Q4 YTD FX Impact Breakdown (Flow and Stock)
FX impact vs. FY22 Q4 YTD +5.0B JPY
Flow +10.2B JPY: USD and EUR appreciation positive impact
Rate (JPY)FY22 Q4 YTD
Average Rate

FY23 Q4 YTD
Average Rate

Variation

USD

135

145

EUR

141

157

10
16

CNY

19.7

20.1

0.4

Stock -5.2B JPY: FX impact from elimination of unrealized profit on inventory assets
Rate (JPY)FY22
End of March

FY23
End of March

Variation

USD

134

151

17

EUR

146

163

17

©TERUMO CORPORATION

25 / 14

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

USD

EUR

CNY

Revenue

22

11

39

Adjusted Operating Profit

0

5

23

USD

EUR

CNY

-2.5

-0.6

-2.0

Impact of 1 JPY depreciation (Stock)
Adjusted Operating Profit©TERUMO CORPORATION

26 / 1427