General Hospital Company,
Toward Sustainable Growth
Terumo Corporation
Director and Executive Vice President,
President of General Hospital Company
Hiroshi Matsumura

November 5, 2014

1H Domestic Sales in Negative Growth
General Hospital Company: monthly performance in year-on-year comparison
110%

Recoil reduction in demandfollowing tax hike105%

beds utilization rate

Restrained patients consultation

103%

100%

95%90%

Temporary decline in hospital

101%
98%

94%

Apr

95%

May95%

JunJulAugSep(Excluding infusion and syringe pumps)© Terumo Corporation

2014/11/52/10

Declined Beds Utilization Due to “Revision of Bed Classification”
PresentYear 2015

Oct, 2014, all hospitals arerequired to report their
nursing needs to MHLW.

7:1
nursing care system(360K hospital beds)

Short-term
acute care

•Review of intensity criterion for
nursing care needs

10 : 1•Tighten assessment of averagenursing care system

length of stay

(220K hospital beds)•Ratio of discharge home: > 75%

13 : 1 / 15 : 1

Convalescentcarenursing care system(80K hospital beds)

Long-term care beds
(220K hospital beds)

Acutecare

Temporary decline
in hospital bedsutilization rate

Rehabilitation

Chroniccare
Long-term care

© Terumo Corporation

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Business Profit on the Road to Improvement
Business Profit Margin of General Hospital Company
16%

14%

12%

10%
FY13_2Q FY13_3Q FY13_4Q FY14_1Q FY14_2Q© Terumo Corporation

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For Profitable and Sustainable Growth Boost sales growth for “Drug & Device”, and “DM and Consumer Healthcare”
 Accelerate profitability improvement in “General Hospital Products” and“Pharmaceutical and Nutrition”%Profitability Improvement
Profitability

General Hospital Products

PharmaceuticalandNutrition

Sales-size

Drug&DeviceDMandConsumer
Healthcare

SalesExpansion*The area of each box represents its profit size
© Terumo Corporation

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GrowthStrategy: #1

Create High-Value Added Business for Hospital Market

Become a solution provider for Medical Professionals and Patients
Prevent accidental needle-stick and malpractice, Promote safe practiceIV catheter,
SURFLO V3

Safety syringe

Closed anticancer
drug infusion system
Safe Infusion System

Enhance operation efficiency

Realize less pain treatment andearly hospital discharge

Nanopass 34G© Terumo CorporationPain control
2014/11/5

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GrowthStrategy: #2

Expand B2B Business for Pharmaceutical Companies

Benefit from high-growth pharmaceutical market
 Vaccine, biotechnology-based medicine (antibody, protein)Provide pharmaceutical companies
with high-value added functions
 High quality, easy-to-use, and drug Safety
 Tailor device design to specific drug package

K-pack needle

Safety needle

Silicon oil free
PLAJEX / Nanopass© Terumo Corporation

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GrowthStrategy: #3

Global Strategy

Expand Sales by direct marketing in JP and Asia
Expand high-value added products through B2B business in EU and U.S.
Sales
M$
110
100

Improve Profitability for
U.S. General Hospital Products businessBusiness Profit Margin (BPM)

50-1010%

Sales
BPM

0%

FY12

FY131H FY14© Terumo Corporation-10%
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Transform Product Portfolio of Overseas Business【Europe】
 Low profitability business for hospitals: transition its activities
of production and sales
 Expand high-value added, high-growth B2B businessfor pharmaceutical companies
Sales
EUR M
100

Business Profit
Margin50%

80
60

40%
Hospitals
病院

30%

40

20%

20

10%

0-20

B2B
Ｂ２Ｂ
FY130%
After 3yrs

After 6yrs© Terumo Corporation-10%
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IR Contact
Terumo Corporation
Corporate Communication (IR) Dept.
E-mail: kouhou_terumo01@terumo.co.jp

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 notedthat actual results may differ from those forecasts on projections due to various factors. Factors
affecting to actual results include, but are not limited to, changes in economic conditions
surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.
The market share information in this presentation is partly derived from our own independentresearch.

© Terumo Corporation

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