Financial Results for the Third Quarter of
Fiscal Year Ending March 31, 2023 (FY2022)

February 9, 2023

Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation

Hello. I am the CAFO, Muto. I will give an overview of our earnings
results for the 3rd quarter of the fiscal year ending March 31, 2023.

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. 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 / 262

Highlights
Revenue
Highest-ever as a three-month result
All regions including China grew year on year even when excluding FX

Operating Profit
Exceed 30% growth year on year and much more growth quarter on quarter
Assertive in pricing with expanding segments and regions
Portfolio rationalization (nutrition business) as well as Q2

Revision of FY22 guidance
Reflect FX impact to sales (Q4 guidance rate; USD 130JPY/Euro 140JPY)
Downward profit due to macro environment impact and progress of new driver©TERUMO CORPORATION

3 / 26First, the highlights of this earnings announcement.
Revenue continued to exceed 200 billion yen as in Q2, for ourhighest-ever result.
When excluding FX impact, all companies and regions saw increased
revenue, including China, where there were COVID-19 concerns.
Profit increased over 30% year-on-year, and expanded even further
compared to Q2.
We proactively raised prices in an expanded number of businesses
and regions.
We also continued activities from Q2 to rationalize our portfolio,
completing the sale of the nutrition business that was part of Hospital
Care Solutions. We recorded a profit of 3.9 billion yen from that sale.
In light of factors including the results up to Q3, we will revise ourearnings guidance.
We will revise our revenue guidance upward, primarily to reflect FX
impact.
We will revise our profit guidance downward, to reflect unfavorable
macro environmental factors and the starting costs of the new Plasma

Innovation business.
Next slide, please.

3

P&L Results
Revenue: Highest-ever quarterly and Q3 YTD revenue
Operating profit in Q3 stand alone increased significantly both YoY and QoQ, including profit from sale of the nutrition business that waspart of HCS in TMCS
100M JPY
Revenue
Gross Profit（%）

SG&A Expenses（%）

R&D Expenses（%）

Other Income and Expenses
Operating Profit（%）

Adjusted Operating Profit（%）

Profit before Tax（%）

Profit for the Year（%）
Average exchange rate (USD/EUR)©TERUMO CORPORATION

FY 21 Q3 YTD

FY 22 Q3 YTD

5,235
2,788

6,180
3,183

(53.3%)(51.5%)

1,463

1,785

(27.9%)(28.9%)

375

456(7.2%)(7.4%)

-6
945

-7
935

(18.0%)(15.1%)

1,072

1,096

(20.5%)(17.7%)

930

921(17.8%)(14.9%)

717

702(13.7%)(11.4%)

111JPY/131JPY

136JPY/141JPY

ChangeChangeexcluding FX
impact

18%
14%

6%
3%

22%

9%

22%

8%

-1%

-6%

2%

-6%

-1%
-2%

FY21 Q3

FY22 Q3

1,788
926

2,147
1,114

(51.8%)(51.9%)

507

615(28.4%)(28.6%)

128

159(7.2%)(7.4%)

-5
286

35
375

(16.0%)(17.5%)

330

392(18.5%)(18.2%)

278

375(15.5%)(17.5%)

217

299(12.1%)(13.9%)

Change
20%
20%
21%
24%
31%
19%
35%
38%

114JPY/130JPY 142JPY/144JPY

4 / 26

Here are the P&L results.
We recorded the highest-ever revenue for a quarter, and exceeded
600 billion yen year-to-date as well. It was an 18% increase year onyear.
Q3 standalone gross profit improved year-on-year.
Operating profit was 37.5 billion yen, for a 31% year-on-year increase.
This includes 3.9 billion yen in profit on the sale of the nutritionbusiness.
Year-to-date adjusted operating profit returned to profit growth.
Next slide, please.

4Operating Profit Variance Analysis (Q3)

(100M JPY)
G/P increment by sales increase:375
Pricing
G/P
incrementbysales
increaseGrossmarginBecause of demand recovery and new products
Gross margin:

+10

FX
SG&A

Reimbursement
price, etc.

Continuous macro environment impact

R&D

Price:
Price increase doubled compared to Q2-8

SG&A, R&D increase:
Enhanced SG&A control
FX:
Appreciating yen at end of Q3

FY21 Q3 FY21 Q3
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

FY22 Q3 FY22 Q3
Adjusted Operating
Operating Profit
Profit5 / 26

Here is the Q3 variance analysis.
Gross profit increment by revenue increase was 6.5 billion yen. In
addition to demand recovery, revenue grew thanks to positive impact
from new products.
Gross profitability on sales was minus 2.0 billion yen as the absoluteamount of inflation impact increased.
In Price, price increases had an effect of 1 billion yen, increasing
further from Q2. In November, the Medical Care Solutions company
raised prices in Japan as well; positive impact was achieved throughefforts going beyond business segment and region.
SG&A saw stronger expense controls from Q3.
In FX, negative impact by stock was reduced by yen appreciation
toward the end of the quarter.
Next slide, please.

5Operating Profit Variance Analysis (Q3 YTD)

(100M JPY)

G/P increment by sales increase:
Because of demand recovery and new products
Gross margin:

Gross

Continuous macro environment impact

Pricing

G/P margin +17
increment
SG&A
Reimburby
sementsales
price, etc.
increase

Price:FX
R&D

Assertive in pricing with expanding segments
and regions in Q3-22

SG&A, R&D increase:
Promote SG&A control
FX:
Appreciating yen at end of Q3

FY21
FY21
Q3 YTD Q3 YTD
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

FY22
FY22
Q3 YTD Q3 YTD
Adjusted Operating
Operating Profit
Profit6 / 26

Here is the year-to-date operating profit variance analysis. The same
positive factors I explained for Q3 standalone were present year-todate as well. Price increase effect expanded to 1.7 billion yen.
Next slide, please.

6

Revenue by Region
C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Interventional Systems, CV: Cardiovascular, TA: Terumo Aortic (Vascular Graft), HCS: Hospital Care Soplutions, PS: Pharmaceutical Solutions

FY22 Q3 YTDYoY change

Revenue (100M JPY)
FY22 Q3
YTDRegional
breakdown

Q3

FY20
Japan FY21
FY22
FY22

25%
Europe19%
Americas
34%

9%
12%

548
526
558
320
357
414
487
549
743

Q3 YTD

Comments( ) FXN

1,483
1,550
1,570

1%

YTD sales turned to increase year-on-year,
driven by TMCS with storong sales in PS anddemand recovery of HCS

875
1,040
1,186

14%
(5%)

Sales increase in all companies excluding
FX, driven by TBCT. Steady growht in C&V
and TMCS

1,311
1,612
2,124

32%
(8%)

Double-digit growth excluding FX in TA,
Neuro and Blood center business. TIS grewwith high-single digit

China

131
145
183

334
446
566

27%
(9%)

TIS and Neuro grew close to double-digit.
Blood center business grew double-digit

Asia and
Others

167
212
249

482
586
733

25%
(10%)

C&V and TBCT grew. TIS and CV maintained
double-digit growth excluding FX©TERUMO CORPORATION

7 / 26

Next is revenue by region.
In Japan, year-to-date revenue pivoted to growth. Pharmaceutical
Solutions was strong and HCS saw demand recovery, while TMCS
(Medical Care Solutions) was the main driver.
In Europe, TBCT (Blood and Cell Technologies) was strong, while
C&V (Cardiac and Vascular) and TMCS were also steady, resulting inall companies growing their revenue when excluding FX.
In the US, TA, Neurovascular, and Blood Center Solutions all grew indouble digits, while TIS grew in the high single digits, when excluding
FX.
In China, there was some COVID-19 impact, but TIS and
Neurovascular grew nearly in the double digits even when excluding
FX, while TBCT was a driver growing in the double digits.
In Asia and others, C&V and TBCT grew, with TIS and CV inparticular maintaining strong double-digit growth even when excluding
FX impact.
Next slide, please.

7

growth excluding FX. China grew high-single digit
C&V: 6%
Segment profit improved both YoY and QoQ due to FX and expense control(100M JPY)
Q3 YTD

Q3

Comments( ) FXN

TIS:

3,589
2,944
2,384
Revenue

+22%
(+6%)

890

1,001

1,235

+103

CV:

Number of procedures in Japan not fully
recovered due to COVID-19 impact

+46

TA:

Strong revenue of Thoracic stent graft RelayPro,
expanded application in Japan market. Thoraflex
Hybrid and other products also strong

+55

836

560
Segment
Profit

+16%
(+0%)

240

215

+441

NeuroChina buisiness increased due to distribution
vascular: network expansion

+23%

723

Expanded sales of PTCA guidewire including new
products in the therapeutic field, closure device
and sheath in access

Q3 YTD
YoY

307
+42%

Profit%

FY20

FY21

FY22

FY20

FY21

FY22

24%

25%

23%

27%

22%

25%

©TERUMO CORPORATION

Profit:Improvement due to FX and expense control

8 / 26

I will now explain the results by company. First, the Cardiac and
Vascular Company.
Overall revenue continued to grow, at 6% when excluding FX. China,
too, continued high single-digit growth.
TIS grew revenue in PTCA guidewires, which added a new product,and in products including closure devices.
Neurovascular showed growth through expansion of its China sales
network.
CV experienced delays in the recovery of number of surgicalprocedures in Japan, but nevertheless continued to maintain growth.
In TA, the thoracic stent graft Relay Pro was strong, while receiving
additional application and insurance reimbursement for aortic
dissection by Japan regulators. In the US, the Thoraflex Hybrid andother products grew sales as planned.
In segment profit, factors including FX impact and cost control
contributed for an increase in profit.
Next slide, please.

8Japan demand showing signs of recovery PS: New products added, rapid growth
TMCS: HCS:
Pricing action in Japan to offset macro environment impact(100M JPY)
Q3 YTD

Q3

Comments

Q3 YTD
YoY( ) FXN

1,290

1,387 1,455

Revenue

+5%
(+2%)

472

468

517
+11%

205

193
126

Segment
ProfitProfit%-35%(-27%)

88

59

In infusion area, medical devices anddrugs are showing signs of recovery inJapan. Adhesion barrier also expanding.
November 2022, medical device priceincrease also contributing

+30

LCS
Life Care
Solutions:

Revenue of SMBG dropped due toseverer competition. Thermometer andblood pressure monitor demand
recovered in Q3-12

PS
Pharmaceutical
Solutions:

Sales launch of the combination product“G-lasta subcutaneous injection 3.6mg
bodypod” we jointly developed with
Kyowa Kirin Co., Ltd.

Profit:Expanded macro environment impact inJapan in areas including rising electricity
prices and continuous FX impact.
Medical device price increase in Japanfor HCS etc. from November

45
-25%

FY20

FY21

FY22

FY20

FY21

FY22

16%

14%

9%

19%

13%

9%

©TERUMO CORPORATION

HCS
Hospital Care
Solutions:+49

9 / 26“TMCS” is the Terumo Medical Care Solutions Company.
Q3 revenue exceeded 50 billion yen for an 11% increase year on year.
In HCS (Hospital Care Solutions), there were signs of demand
recovery in Japan, while PS (Pharmaceutical Solutions) grew strongly
as it added new products.
Hospital Care Solutions also saw signs of demand recovery in Japanfor devices and pharmaceuticals in the infusion space, while adhesion
barrier expanded. A November 2022 medical device price increase
we enacted was also a contributor.
In Life Care Solutions, self-measurement of blood glucose products
had been experiencing increasingly harsh competition that led toreduced prices and declining revenue; however, Q3 standalone
demand recovered year-on-year in thermometers and blood pressure
monitors.
Pharmaceutical Solutions added the new combination productdeveloped jointly with Kyowa Kirin, G-Lasta subcutaneous injection
BodyPod, growing sales as planned.
In segment profit, inflation impacts including rising electricity costs in

9

Japan are expanding, although we did institute medical device priceincreases in Japan in November. FX impacts are continuing.
Next slide, please.

9

centers outside Japan strong, maintaining double-digit growth excluding FX
TBCT: Blood
Update for plasma innovation; IDE approval for nomogram ver.2 last weekend(100M JPY)
Q3 YTD

Q3

Comments

Q3 YTD
YoY( ) FXN

Blood Centers:

1,134

Revenue

810

902
+26%
(+10%)

291

319

394

Apheresis:

+23%

144

172

Profit%-25%(-26%)

56

54

38
-30%

FY20

FY21

FY22

FY20

FY21

FY22

18%

19%

11%

19%

17%

10%

©TERUMO CORPORATION+180

Sales expansion due to increasing
number of procedures using therapeutic
apheresis and hematopoietic stem cellcollection+42

Cell Processing:

Steady demand from continuous
growth in cell therapy

Profit:In the process of launching the new
business, continuous macro
environment impact

129

Segment
ProfitOutside Japan remains strong. Sales
increased in products including
component collection kits and whole
blood collection automation innovation+10

10 / 26

Next is TBCT (Blood and Cell Technologies) Company.
Revenue remained strong in Q3, with continued double-digit growthwhen excluding FX.
The Blood Center business remained strong outside Japan, while
component collection consumables and whole blood collection
automation innovation grew in Europe and the United States
especially.
There was an increase in number of patients using apheresis, leading
to continued sales expansion.
Cell processing saw steady demand thanks to sustained growth incell therapy.
In segment profit, the worsening of macro environmental factors are
impacting the new plasma innovation business start.
As the latest update regarding plasma innovation: That business has
just received IDE approval for the nomogram version 2.
Next slide, please.

10

Guidance Revision（ ）excluding FX

FY22Revisedguidance(C)
8,150

Revenue

7,033

FY22
Previous
guidance(B)
7,750

Operating profit

1,160

1,320

1,220

（%）

16.5%

17.0%

15.0%

Adjusted operating profit

1,344

1,510

1,430

（%）

19.1%

19.5%

17.5%

888

1,000

915

125JPY/135JPY
125JPY/135JPY

135JPY/140JPY
130JPY/140JPY

FY21
Actual(A)

Amount($100M)

Profit for the year
Annual guidance rate (USD/EUR)
Q4 guidance rate (USD/EUR)

Revisionamount(C)-(B)

YoY(C)÷(A)+400+16% (+5%)-100+5% (-2%)-80+6% (-3%)

-85

+3%

（ ）excluding FX

Revenue
By company
Amount($100M)

FY21
Actual
(A)

FY22
FY22
Revision
Previous Revisedamountguidance guidance(C)-(B)(B)(C)

Adjusted operating profit
YoY(C)÷(A)FY21
Actual
(A)

FY22
FY22
Revision
Previous Revisedamountguidance guidance(C)-(B)
(B)
(C)

YoY
(C)÷(A)

C&V

3,971

4,445

4,752

+307

+20% (+7%)

932

1,134

1,115

-19

+20% (+3%)

TMCS

1,853

1,923

1,933

+10

+4% (+1%)

236

223

171

-52

-28% (-22%)

TBCT

1,206

1,380

1,463

+83

+21% (+4%)

208

182

151

-31

-28% (-29%)©TERUMO CORPORATION

11 / 26

Terumo has announced a revision of its earnings guidance.
In revenue, we are revising upward by 40 billion yen from the original
guidance, to 815 billion yen, to reflect FX impact. Our Q4
assumptions are 130 yen to the US dollar and 140 yen to the euro.
In operating profit, we are revising downward by 10 billion yen fromour original guidance to 122 billion yen. Our assumption at the start of
the fiscal year that inflation impacts would lessen in the second half
was not realized; in fact, impacts are expanding in ways including
rising electricity prices in Japan. In addition, we reflected the status of
the Plasma Innovation business start.
Other items included in this, as well as the guidance revision bycompany, are included in the reference materials.

11

Dividend Guidance Revision
Achieve 30% dividend payout ratio
FY22 annual dividend of 40 yen (2 yen increase from the previous guidance)
Previous guidance (Q2)

Current guidance

Dividend / share (yen)38.0 yenInterim 19 yen
Period end 19 yen

40.0 yenInterim 19 yen
Period end 21 yen

Dividend payout ratio

28.4%

32.8%

*FY22 Revised Guidance Profit for the Year: 91.5 billion yen; EPS: 121.90 yen©TERUMO CORPORATION

12 / 26

Regarding our dividend guidance for the fiscal year, we will take a
step in a new shareholder return direction to increase the dividend by
2 yen above original guidance, for an annual dividend amount of 40
yen.

12

New Measures to Raise Corporate Value
More assertive growth strategy
More assertive M&A promotion
Focus areas: While maintaining multidirectional perspective, focus on areas such as Vein,
CDMO and Diabetes

Accelerate profitability improvement
Continue worldwide price policy review in FY23
Get VC2 results earlier to fight inflation pressure

Capital policy reinforcement
Transition from dividend payout ratio toward total return ratio
Improve capital effciency/Raise financial leverage

Sustainability management
Establish Sustainability Management Committee
Implemantation of future corporate value targets to executive officers©TERUMO CORPORATION

13 / 26

In December 2021, Terumo announced GS26. Before the second
year of GS26, now we can see the light clear from COVID-19. This isa good timing to enhance our corporate value with management
perspective.
Today, I will explain the four initiatives newly set for enhancing
corporate value.
First is to make M&A more proactive. Historically, Terumo gained its
growth momentum from both organic and M&A contributions. In
addition to existing growth drivers, we will spread more wide
perspective in M&A including Vein, CDMO and Diabetes as the new
growth drivers.
Second is to accelerate profitability improvement. We will continue
and expand the price increase activities we started from this 2nd half,
regardless of business segment and region.
In VC2, we will bring forward profitability improvements, with the
production sites transitions to cost competitive locations such as
Costa Rica and Vietnam deployment of automation models, GBS
implementation, and other elements.

13

Third is to enhance our capital policy. We continue the steady increaseof dividend and improvement of dividend payout ratio, as well as aim
total shareholder return to 50% within five years with the acquisition oftreasury shares in the right timeframe. We also aim ROE to improveby plowback as well as raising financial leverage with applying debt for
financing. We will raise both profitability and capital efficiency, which
will lead to enhancements of our corporate value.
Last is regarding our promotion of sustainability management. We
announced the establishment of Sustainability Committee as of April
1st. Today, we also announced the policy revision of executive
performance evaluations for implementing ESG and CSV themes in
GS26 responsibly. We will implement corporate governance tosustainability management as well.
We look forward to reporting the progress and process of these
initiatives regularly onward.
This concludes my explanation of our earnings. Thank you.

13

Reference©TERUMO CORPORATION

14 / 26

14

Product Pipeline and Major Topics*C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Terumo Interventional Systems, TA: Terumo Aortic (Vacular Graft), HCS: Hospital Care Solutions, LCS: Life Care Solutions

Major Product Launch, Approval Status
Field
TIS

GeneralDrug-eluting coronary stent

Neurova
Flow diverter stentscularTill FY21(Complete all)

FY22
Complete / Update

FY23 and beyond

Ultimaster Nagomi

Japan sales

EU launch

Asia, Latin America
launchFRED X

EU, US sales

Product name

TA

Thoracic aorta stent graft

Relay Series

HCS

General infusion pump

Terufusion infusion pump 18
model

LCS

Patch insulin pump

Medisafe WITH series

TBCT

Cell expansion system

Quantum Flex

US sales expansion, regional expansion

EU sales,Aneurysm indication
approval in US, JapanIn US, dissection andtrauma; in Japan,
dissection indication
approved

Additional models,
RelayBranchclinical trials conductedJapan sales

Launch in Asia

Launch in EU,
Latin America

Current model
Japan, EU sales

Version-up model
Japan launch

AID system collaboration
with Diabeloop,
Planning regional
expansion

Quantum
global sales

Launch Quantum Flex Cell processing business
additional model
aims for double-digit growth

FRED X

RelayPro

Major Topics• Group: Finished acquisition of treasury stock and cancelled shares based on BOD decision (December 2022)• C&V: Ultimaster, first stent to receive the mention 1-month DAPT in the reimbursement conditions in France(December 2022)• TMCS: New indwelling needle Surflo ZERO launched (January 2023)©TERUMO CORPORATION

15 / 26

Revenue by Segment and Region©TERUMO CORPORATION

16 / 26

Quarterly Trend of Revenue and Operating Profit
Revenue: 20% growth YoY in Q3, highest-ever for a quarter. 4% growth QoQOperating profit: 31% growth YoY in Q3. 47% growth QoQ(100M JPY)

2,147
2,060
1,973
1,788

1,729

1,717

1,798
1,652

1,653

1,520

TBCT（Revenue）

1,313

TMCS（Revenue）
C&V（Revenue）
Total（Operating Profit）

362
181

304

238

FY20 FY21 FY22Q1

©TERUMO CORPORATION

296

334

255

FY20 FY21 FY22
1

Q2

286

375

231

FY20 FY21 FY221Q317 / 26

215

FY20 FY21 FY22
1

Q4

1

P&L (QoQ)(100M JPY)

Revenue

FY21 Q3(Oct-Dec)

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

Q2(Jul-Sep)

Q3(Oct-Dec)

1,788

1,798

1,973

2,060

2,147

Gross Profit

926 (51.8%)905 (50.3%)

1,016 (51.5%)

1,054 (51.1%)

1,114 (51.9%)

SG&A Expenses

507 (28.4%)

528 (29.4%)

566 (28.7%)605 (29.4%)

615 (28.6%)

R&D Expenses

128 (7.2%)

144 (8.0%)

141 (7.1%)

157 (7.6%)

159 (7.4%)

Other Income andExpenses

-5

-18

-6

-37

35

Operating Profit

286 (16.0%)

215 (12.0%)304 (15.4%)

255 (12.4%)375 (17.5%)

Adjusted Operating
Profit330 (18.5%)

273 (15.2%)

359 (18.2%)

345 (16.8%)

392 (18.2%)

114 JPY
130 JPY

116 JPY
130 JPY

130 JPY
138 JPY

138 JPY
139 JPY

142 JPY
144 JPY

Quarterly
Average Rate

USD
EUR

©TERUMO CORPORATION

18 / 26

SG&A (QoQ)(100M JPY)
FY21 Q3

Q4

FY22 Q1

Q2

Q3(Oct-Dec)(Jan-Mar)(Apr-Jun)(Jul-Sep)(Oct-Dec)

Labor

255

256

298

312

316

Promotion

44

45

46

44

52

Logistics

39

41

44

47

49

Depreciation

51

54

56

59

60

Others

118

132

123

142

138

SG&A total
（%）

507

528

566

605

615

(28.4%)(29.4%)(28.7%)(29.4%)(28.6%)

R&D

128

144

141

157

159

（%）

(7.2%)(8.0%)(7.1%)(7.6%)(7.4%)

Total
（%）

635

672

706

761

774

(35.5%)(37.3%)(35.8%)(37.0%)(36.0%)

Quarterly

USD

114JPY

116JPY

130JPY138JPY

142JPY

Average rate

EUR

130JPY

130JPY138JPY

139JPY

144JPY©TERUMO CORPORATION

19 / 26

SG&A (YoY)(100M JPY)
FY21
Q3 YTDSalaries & Wages
Sales Promotion
Logistical Costs
Depreciation andamortization
OthersSG&A Expenses Total（%）

R&D Expenses（%）

SG&A Expenses Total（%）©TERUMO CORPORATION

FY22
Q3 YTD+/-

Change Change
vs. FY21 excluding
Q3 YTD FX impact

FY21 Q3

FY22 Q3+/-

Changevs. FY21
Q3

753
114
117

926
142
140

172
27
24

23%
24%
21%

7%
13%
9%

255
44
39

316
52
49

61
8
10

24%
17%
26%

149

175

26

18%

9%

51

60

9

19%

330
1,463

402
1,785

73
323

22%
22%

11%
9%

118
507

138
615

20
108

17%
21%

31

24%

138

22%

(27.9%)(28.9%)

375

456(7.2%)(7.4%)

1,837

2,241

(35.1%)(36.3%)(28.4%)

81

404

22%

22%

8%

8%

(28.6%)

128

159(7.2%)(7.4%)

635

774(35.5%)(36.0%)

20 / 26

20

Adjusted Operating Profit amountOperating Profit

FY 21
Q3 YTD945

FY 22
Q3 YTD
935

FY21
Q3
286

(100M JPY)
FY22
Q3
375

118

144

39

49

9

17

5

-32

1,072

1,096

330

392

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

Adjusted Operating Profit<General examples of adjustment items>• Acquisition related cost • Impairment loss
• Lawsuit settlement• Nonlife insurance income• Restructuring loss • Loss on disaster

Adjustment 2. Major one-time profits & losses

FY 21
Q3 YTD

Restructuring loss
Goodwill amortization related to sale of part ofcell processing businessProfit from sale of nutrition business
Others©TERUMO CORPORATION• Other one-time profits & losses

6

FY 22
Q3 YTD
16

-

36

2

-39
4

21 / 26

21

CAPEX, Depreciation and R&D Expenses(100M JPY)
(100MFY22
JPY)
Guidance
750

CAPEX

895

772

692

FY22
Q3 YTD
511

Depreciation
Amortization of
acquired intangible assets
Others

477

484

532

474

635

157

146

161

144

173

320

338

371

330

462

FY19

FY20

FY21

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

FY22 Q3YTD (51.1 BJPY): Continued investment mainly for TIS, Neurovascular, PS, and Blood & Cell
Technologies in production capacity, source plasma collection, R&D, as well as IT infrastructure (SAP)“CAPEX” FY22 guidance revision: Due to progress of projects

R&D Expenses

FY19

FY20

FY21

506

491

518

FY22
Q3 YTD456

FY22
Guidance
600

FY22 guidance revision: Revison of FX rate
©TERUMO CORPORATION

22 / 26

22

Cash Flows (Q3 YTD)
(100M JPY)

Investing & Financing CF-1,177

Operating CF
+749
248
524

921

2,053

Cash at the endof FY21©TERUMO CORPORATION

Incometaxes, etc.

Depreciation
andamortization

448

Working
511
capitalgains and
CAPEX
lossesProfitbeforetax

501
279
Acquisitionoftreasury Dividends
sharesCAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

113

Others1,624

Cash at the endof FY22 Q3

23 / 26

23

Cash Flows (Q3)
Investing & Financing CF-647

Operating CF
+145

181
375

Profitbeforetax

109

Incometaxes, etc.
Depreciation
andamortization

302
183
Working
capitalgains and CAPEX
losses©TERUMO CORPORATION

357
143

2,126

Cash at the endof FY22 Q2(100M JPY)

Acquisitionoftreasury Dividends
sharesCAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

35

Others1,624

Cash at the endof FY22 Q3

24 / 26

24

FY22 FX Impact Breakdown (Flow, Stock)
FX impact vs FY21 +8.4B JPY
Flow Q3 YTD +9.0B JPY: EUR, CNY appreciation positive impact

EUR

FY21 Q3 YTD
Average rate during
period
131

CNY

17.3

Rate (JPY)FY22 Q3 YTD
Average rate during Variation
period
141
10
19.9

2.6

Stock Q3 +2.5B JPY, Q3 YTD -0.6B JPY: FX impact from elimination of unrealized profit oninventory assets• Yen appreciation progressed in December for positive effect in Q3 Annual impact reduced to minus 0.6B JPY

USD

FY22 Q3 YTD
Average rate during
period
136

EUR

141

Rate (JPY)©TERUMO CORPORATION

FY22
End of December

25 / 26

Variation

133

-4

142

1

Foreign Exchange Sensitivity(100M JPY)

Annual inpact of 1 JPY depreciation
USD

EUR

CNY

Revenue20

938

Adjusted Operating Profit

1

5

16

<Reference> Impact when JPY depreciation 10%

Adjusted Operating Profit©TERUMO CORPORATION

North
America

Latin
America710EuropeEUR Zone
Others74

26 / 26

13

Asia
CNY

Others3136