Terumo Corporation
November 9, 2017

Q&A Session at the Financial Results Briefingfor the First Half of the Fiscal Year Ending March 31, 2018
Outlined below are the principal Q&As from the financial results briefing of November 9, 2017.
Certain details have been expanded or modified to provide readers with a deeper understanding ofTerumo Corporation’s performance and activities.

Q1: You kept your full year guidance in FY2017 unchanged but do you anticipate any factors that
could impact financial performance in the second half?
A1: One uncertainty is the timing when the factory in Puerto Rico will resume shipments of theAngio-Seal, a vascular closure device. We partially commenced production from November
2017 by using on-site power generators, aiming to restart shipments by the end of calendar year
2017. However, we surmise it will still take some time before we can resume full-fledged
operations given the unstable electric power supply. Even if we are unable to resume shipments
by the end of FY2017, we believe we can still achieve our full year guidance.

Q2: How much Angio-Seal inventory do you have in stock? I hear that the number of Puerto Rican
residents evacuating to the U.S. mainland is increasing. Will this trend have an impact on theresumption of production? Also, what potential impact do you see to the results in the second
half?
A2: We had roughly 1.5 months’ worth of inventory at the moment when production got suspended.
We are continuing to provide customers with product while adjusting sales volume. We havealready informed customers that there is a possibility of Terumo being unable to supply
products for a certain period even if we resume shipments within calendar year 2017. We havereceived a certain degree of understanding from our customers given that this was caused by anatural disaster. Fortunately, all of our local employees are safe. We have been making a full
effort to resume shipments as soon as possible. Regarding the damages to building facilities andother assets, we estimate it to be around ¥300 million. We plan to file an insurance claim for thecost required for refurbishments and for the lost sales opportunity due to the suspension ofshipments. However, we do not expect to receive a payout until sometime in or after FY2018
given the time it will take for the insurer to do an appraisal and to negotiate the settlement.

1The 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 9, 2017
Q3: In your FY2017 annual guidance announced on May 10, you stated “G/P increment by salesincrease” of ¥17.5 billion in operating income. However, you already posted G/P increment bysales increase of ¥17.3 billion in the first half. Can you explain what portion of this wascontribution from acquisitions?
A3: In our FY2017 annual guidance announced on May 10, we specifically separated out the amountof impact from acquisitions. Therefore, we did not include any acquisition-related impact incatalyst “G/P increment by sales increase” in operating income of FY2017 annual guidance. As
we have made progress integrating the assets we acquired, it is now difficult to accurately
demarcate acquisition-related expenses from others. In light of this, in our Q1 and first halffinancial results presentation materials, we did not separate the impact from acquisitions but
simply presented catalysts with the aforementioned impact included in them. In the first half,
G/P increment by sales increase was ¥17.3 billion. Out of ¥17.3 billion, ¥9.6 billion reflects
contributions from acquisitions. Among gross margin improvement of ¥5.4 billion, ¥2.0 billion
was attributable to impact from acquisitions.

Q4: The gross profit margin in the neurovascular business seems high. Is the business profit
margin for this aforementioned business is higher than that for overall Cardiac and VascularCompany? I believe Terumo has currently been implementing aggressive R&D investment
for new product development. When do you expect to see a return on investment andcontribution to an improvement in profitability?
A4: The gross profit margin is high in the neurovascular business. However, the business profit
margin at the neurovascular business is lower than that of overall Cardiac and VascularCompany for now owing to high R&D expenses as well as expenses for sales promotion andtraining. Going forward, since we anticipate a high level of market growth, we plan to continue
implementing growth investments, carrying out further profit management for each product,and steadily improving the business profit margin for the overall business.

Q5: What has the reaction to the new aneurysm embolization system, WEB™ been since its launch?
A5: We launched it in Europe to limited extent with smaller size added into a line-up after theacquisition. There has been an increase in the number of cases applicable to WEB as the device
has smaller sizes. We also have received good evaluation from customers. We plan to expand
sales in and after Q3 by expanding sales territory. In the United States, clinical development isprogressing smoothly, and we aim to receive sales approval in FY2019.

2The 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 9, 2017
Q6: Business profit margins at the General Hospital Company and Blood Management Company areimproving year-on-year. In the General Hospital Company, several initiatives for improvementin profitability, such as downsizing low-profit accounts, stand out. Do you plan to continue
implementing business operations oriented by profit improvement?
A6: Roughly 80% of sales in the General Hospital Company are coming from markets in Japan witha low growth rate. We therefore do not expect to post a high sales growth rate. We aim tocontinue implementing further profit management while steering the company towards growth,
mainly with alliance business and others where we anticipate sales growth. Meanwhile, in theBlood Management Company, we also plan to improve profitability while aiming for sales
growth.

Q7: It appears that recent acquisition deals have contributed to earnings quickly after integration. Is it
correct to understand that you have accumulated knowhow on integration following anacquisition? Going forward, do you plan to increase the number of acquisition deals that will
immediately contribute to earnings?
A7: The objective of an acquisition depends on the each deal. Accordingly, we don’t necessarily
target acquisitions only contributing to earnings as soon as they get completed. Since we havecontinuously executed acquisitions in various fields and on different scales, I believe Terumo
successfully achieved accumulating knowhow both on post merger integration and the subtle
selection of deals suited for the Terumo Group.

3The 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.