Adapting to a New Healthcare Era:
Disease-oriented Approaches
Terumo Corporation
President and CEO
Shinjiro SatoNovember 7, 2019

Key Initiatives towards Sustainable Growth

Strengthen Global Operations

Accelerate Strategic Development

Leverage Group’s Comprehensive Strength

Ref: "Initiatives towards Sustainable Growth“ November 9, 2017
© Terumo Corporation

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Paradigm Shift in Healthcare
Critical challenges

Aging societies

Crisis in patients’
QOL

Widespread
lifestyle diseases

Fiscal constraints

Increase incomplex diseases

Medical care system needs a change to resolve the challenges.
Technological advancements (e.g. digitalization) will enable and accelerate the change

Where medical care happens

Up to now

Going forward

Hospital, clinics+ Home and community care facilities

Medical care objectives

AcuteAcute
急性期+ Management from health to long-term diseases

Basis for pricing

Input
Input
インプット+ Outcome© Terumo Corporation

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What is “Disease‐oriented Approach” for Terumo?
1. Find the challenges in the entire pathway from prevention to prognosis, notjust in pinpoint such as diagnosis or therapy
Prevention

Diagnosis

Therapy

Prognosis“Become a partner of patient journey”

2. Deliver the best value from diversified solutions, without being restricted byproduct-oriented approach
General Hospital
Cardiac and VascularBest solutions

Blood Management

FORBetter QOL
Medical costefficiency

3. Targeting disease with significant social impact because of the aging of society
Oncology

Diabetes

Chronic
heart
failureFoot care© Terumo Corporation

StrokeIschemicHeartdisease
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Oncology

Deliver Diversified and Cross-divisional Solutions

 Product lineup to improve total QOL from treatment to recovery
 Current business scale: Over 40 B JPY

Treatment
Minimize surgery burden

Treatment aidCare

Reduce postoperative complications

Reduce cancer-related pain

Select optimal treatment

Reduce postoperative pain

Spectra Optia

Acelio, Fentanyl

Get solid nourishment

Safely administer anticancer drugs

Receive outpatient treatment

Reduce swelling

Embolization, drug/bio
absorbable/radioactive beads

Chemosafe

AdSpray

CV port© Terumo Corporation

Methapain

UpLead, UpLead Mini

Jobst

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Oncology

Unique Solutions to Maximize Therapy Outcomes Minimize treatment burden by less invasive localized access  Interventional oncology
 The importance of supportive care is increasing  Anticancer drug administration,pain management, adhesion barrier etc.

Outcomes ofoncology
therapy

Effect oftherapy
Chemotherapy,radiation therapy etc.

Maximize effect+Minimal invasive

Localized access by catheters(Interventional oncology)

Supportive care
Side effect control
Nutrition management etc.

Products across companies

CatheterHepaticartery
EmbolicmaterialsCancer© Terumo Corporation

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Oncology

Already Being a Main Player for Supportive Care in JP

Meet broader needs in supportive care by diversified product portfolio
and further enhance our presenceJapan supportive care market
Approx.
10 B JPY
Devices

Terumo business scale
Cardiac andVascular
1 B JPY

approx.
60 B JPY+Drugs forGeneral
Hospital
8 B JPY

side effect control

Pain management
Chemosafe
Compression therapy
UpLeadAdSpray

approx.
100 B JPY

CV portBloodManagement
1 B JPY© Terumo Corporation

Spectra Optia
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Oncology

Interventional Oncology :Utilize Strong Delivering Technologies

Increasing needs for minimally invasive, localized chemotherapy andradiation therapy
Maximize effect by
localized administration

Minimize treatment
burden by TRIAdvanced(Therapeutic)

Drug-eluting
beads＝Hydrocoil Radioactive
beads

Platform(Access)

Treatment Microwire
catheterOcclusion
catheter

FY15© Terumo Corporation

FY18

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Diabetes

Add Advanced Products to Create Total Solutions

 Commit to the entire field by adding advanced technologies to existing
20 B JPY business Leverage No. 1 monitor market share to expand business toward
treatment, prognosis and data-management
Current
PastFuture
Platform market, diagnosis

Continuous blood glucose monitor

Urine test strips

Blood glucosemonitor

Enter advanced market

Further evolutionCo-development

Insulin administration
related products
Patch pump

© Terumo Corporation

Data linkage systemdevelopment
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Chronicheart failure

CHF is An Urgent Social Challenge Chronic heart failure is a terminal heart disease
Arrhythmia
Myocardial infarction

Heart failure

Valvular disease
Myocardial disease Patients suffer from repeated exacerbation

Heart function

GoodAcute myocardial
infarction

Heart failure state Repeated exacerbations

Increase ineconomic burden Lowered QOL

TimeDeath“Heart failure pandemic” with malfunction of healthcare system led by morepatients, larger healthcare expenditures, lack of hospital beds, might occur© Terumo Corporation

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Chronicheart failure

Unique Portfolio Comprehensively Covers Heart Disease

Take care of the entire patient journey across heart disease by adding
monitoring and data linkage to the business area of PCI, CABG and skeletal
myoblast sheets etc.
Preliminary organic failure
Interventional approach
Drug Eluting
Stent

IntravascularImaging
SystemGuidewire

Closure Device

Chronic heart failure exacerbation
Early diagnosis

Skeletal myoblast cellular baseMonitor to detect exacerbations

Surgical approach

HeartSheet

iPS cell base

Heart-Lung Machine
Oxygenator

Percutaneous Cardiopulmonary
Support System

Early treatment

Platform to enhance network© Terumo Corporation

Business development of iPS
cell-derived cardiomyocyte sheet
through investing in Cuorips Inc.
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Foot care

Broad Portfolio Covering from Prevention of Primary
Disease to Progression Prevention

 Keep “walking with one’s feet” is a key to extend healthy lifespan Provide gateway functionality to devided medical network in addition to early
diagnosis/treatment of blood flow Diverse product lines worth 50 B JPY in revenue are heavily involvedAt-risk
population
Make home checks
for glucose level easy

Primary disease
control
Appropriately
manage diabetes toprevent
complications

Complication
treatment

Progression prevention,functional recovery

Improve lower limb
blood flow toprevent progression

Assist and recover blood flow
to prevent refractory ulcer
and amputation

Prevent progression of kidney disease

Speed up broken bone recovery,
prevent loss of walking ability© Terumo Corporation

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Create Optimal Solutions Through Adding New Capabilities
Current basic capabilities

Broad rangeof technology

Provider access

Education / training Corporate culture Domain expertise+Disease‐oriented
Approach
Insights, strategies

Required additional capabilities

DataAnalytics

Software© Terumo CorporationNetworking
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Conclusion
 In preparation for a new healthcare era, we urge ourselves to shift
toward “disease-oriented” and “consumer/patient-oriented”
strategy through strengthening our focus on disease, unfettered by“product-oriented” strategy
 This will result in unique Terumo solutions that fulfill the goals of“improving patient QOL” and “improving healthcare cost efficiency”,
expanding our contribution in aging societies
 We will continue to enhance our digital capability through various
means, including internal development and outside collaboration,
so that we can provide solutions tailored to each individual in thenear future© Terumo Corporation

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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 notintended to be guarantees of future events or performance. Accordingly, it should be noted that 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, fluctuationsof foreign exchange rates, and state of competition.
The market share information in this presentation is partly derived from our own independent research.

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