Terumo Corporation
November 5, 2015

Q&A Session at the Financial Results Briefingfor the First Half of the Fiscal Year Ending March 31, 2016
Outlined below are the principal Q&As from the financial results briefing held on November 5, 2015.
Certain details have been expanded or modified to provide readers with a deeper understanding ofTerumo Corporation’s performance and activities.
Q1: FY2015 guidance revised in September only reflects performance in the first half but not
expectations for the second half. Does management not expect to see the same degree ofoutperformance in the second half as it did in the first half?
A1: In Japan, we launched our drug-eluting stent (DES) Ultimaster in October 2015, and the sales
were off to a smooth start. We believe there are few risks in the interventional systems businessin the United States and China, which drove over performance in the first half. In general, webelieve that performance is trending upward. However, our initial guidance for the second half
was set higher than that for the first half. In addition, one of our competitors is likely to launch
their own DES in Japan in the near term. Also, in the United States, we are uncertain of thedegree of impact to performance in the Blood Management business from a decline in prices.
For these reasons, we would like to monitor trends for a while longer. Depending on theprogress of our performance, we will revise our guidance again, if necessary.
Q2: Terumo has implemented reforms, including the introduction of business-led management. Have
you completed major reforms?
A2: We have completed our major reforms. However, there is no end to our portfolio reforms. We
will continuously forge ahead with them.
Q3: There does not seem to be any key points differentiating the Ultimaster from another DES to belaunched soon by one of your competitors in Japan. Will you be able to sustain your brisksales?
A3: There is potential for differentiation with the competitor in areas such as coating and metals.
However, physicians like to use new products on a trial basis so there is a chance our sales will
drop temporarily soon after the competitor launches its product. Despite this, we expect thatphysicians will come back to the Ultimaster after using the competitor’s product.
Q4: I believe the business model for the DES is to extend the life of a product by consistently
introducing minor improvements. What do you plan for the Ultimaster?
A4: Since the Ultimaster is a fully developed in-house, we are almost free to implement any
improvements we like. We will continue development for improving the product.

The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.

Terumo Corporation
November 5, 2015
Q5: What is the scale of contribution to profit from the instillation of profit awareness? Also, what
degree of contribution do you expect to see in FY2016 from the portfolio restructuring of theGeneral Hospital business in Europe?
A5: It is difficult to quantify the contribution from the instillation of profit awareness. In the firsthalf, we believe that the benefit was larger than expected. As profits and costs in each businessare being more carefully and closely managed, we are successfully establishing a structure
where growth is directly linked to profits. We expect to see contribution to profits in FY2016
from the portfolio restructuring of the General Hospital business in Europe.
Q6: Please discuss the status of price negotiations with blood centers in the United States.
A6: We are continuing to negotiate prices to prevent them from dropping to levels that we forecast at
the start of the fiscal year. In addition, we are also negotiating for multiple-year contracts, tosecure quantity in the medium- and long-term.
Q7: Why did you achieve larger cost reduction benefits in the second quarter versus the first quarter?
A7: In the DES business, we are beginning to replace Nobori, a product using licensed
technologies, with the Ultimaster, which is fully developed in-house. Also, materials costs inthe second quarter were lower owing to a decline in crude oil prices. Moreover, capacity
utilization at our factories rose due to the increase in unit sales, which contributed to a reduction
in cost.
Q8: Can you explain your product pipeline for coronary stents going forward?
A8: We are jointly developing a drug eluting bioresorbable scaffold with Arterial RemodelingTechnologies S.A., a venture company in France. At present, if we can conquer the challenges
faced by existing products in the market, we believe we can secure a solid share of the market.
In addition, we believe that the use of a hybrid model for metallic and bioresorbable materials isone solution. We plan to move forward with development in conjunction with this.
Q9: What catalysts are driving brisk performance at the interventional systems business in theUnited States?
A9: The number of PCI cases is increasing in tandem with the increase in the number of people
receiving healthcare coverage under Obamacare. In addition, in the United States, sales ofproducts for transradial coronary intervention have once again picked up the pace. A market
penetration rate of over 30% is contributing to our performance. We also launched othertherapeutic devices, including the Misago, a peripheral stent, and the PTA balloon, in themarket in the United States. We can expect further growth once sales of these products begin topick up.

The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.

Terumo CorporationNovember 5, 2015
Q10: Please discuss cost reductions measures going forward and gross margin forecasts.
A10: In addition to steady efforts to reduce costs at our factories in Japan, we also plan to move
forward with cost reductions as a global theme, including further transition of production to ourfactories outside of Japan and the increase in production there. We expect continued
improvement in our gross margin as we have made progress in improvements of product andbusiness mix.
Q11: What is your timeline for the contribution you expect from sales of therapeutic intervention
devices launched in the United States?
A11: The United States is the largest market. We have been making efforts to secure a foothold,mainly by reinforcing our sales force. We look for contribution in the medium- and long-term.
Q12: Are you seeing any concrete results from investments in venture capitals and from incubation
activities in the United States?
A12: We have already gained returns on some of our venture capital investments. As for incubation
activities, we are at the stage where we have to decide on the future of current development
projects. Furthermore, we are looking at additional projects.

The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.