Terumo CorporationFebruary 12, 2019

Q&A Session at the Financial Results Briefingfor the Third Quarter of the Fiscal Year Ending March 31, 2019
Outlined below are the principal Q&As from the financial results briefing of February 7, 2019.
Certain details have been expanded or modified to provide readers with a deeper understanding ofTerumo Corporation’s performance and activities.
Q1: What is the current status of recovery from shipping delays at the Ashitaka factory for both
Japan and overseas respectively?
A1: Shipments have been stable since October, and been fully recovered. As for the shipments
levels, they are above normal.
Sales in Japan have recovered significantly from the impact of the shipping delays. On theother hand, we are unable to ascertain current status of our shares overseas because of the
difficulty in accurately evaluating market share. From the fourth quarter onward, we will needto spend time ascertaining conditions.
Q2: Is it the case that you intentionally reduced product prices in order to recapture market shareand achieve a rapid recovery from the shipping delays at Ashitaka factory?
A2: We did not lower product prices to accelerate recovery. Moving forward, we will consider
introducing measures such as a program that provides our sales force with some incentives.
Q3: Alliance business performance in General Hospital Company is favorable. Is this performanceaccording to plans? Also, is this due to increased sales of existing products or due toincreased sales of sample shipments to pharmaceutical companies?
A3: Our current Mid- to Long-term Growth Strategy outlines annual average sales growth of 20%
for the alliance business. As such, you can say that business is progressing favorablyaccording to plans. As factors behind this increase, both increased sales of existing products
and increased sample shipments contributed.
Q4: Adjusted operating profit margin of General Hospital Company for the third quarter alone
was 19%, which already exceeds the profit margin indicated in the Mid- and Long-term
Growth Strategy. Do you think this profit margin can be maintained, or increased movingforward?
A4: The current adjusted operating profit margin for General Hospital Company is a little too high1
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
February 12, 2019
relative to original plans. As such, we think it will be difficult to further increase this profit
margin. On the other hand, increased sales of highly profitable products such as alliancebusiness and diabetes management products in hospital systems business are contributing to
an improved profit margin.
Q5: What were global sales for drug-eluting stents (DES) year-to-date in the third quarter ofFY2018?
A5: Global sales were approximately 13.0 billion yen, a year-on-year decline of 20%. The main
factors behind this decline were the impact of NHI pricing revisions in Japan and the impactof new product launches by competitors. However, we are gradually recapturing market share
thanks to the September launch of our new DES product "Ultimaster Tansei" in Japan, as wellas the synergy generated with the December launch of our new percutaneous transluminal
coronary angioplasty (PTCA) balloon catheter "Ryurei", and our intravascular ultrasoundsystem (IVUS).
Q6: Do you see changes causing a slowdown on the Japanese market of PCI (percutaneouscoronary intervention) cases?
A6: At present, there are no phenomena suggesting a general drop in cases. Internally, we haveconfirmed transitions in the catheter products used as benchmarks for PCI cases and we haveseen no decline in the aforementioned products. In Japan, overall growth in the number of PCI
cases remains largely unchanged.
Q7: What factors are driving favorable sales for the neurovascular business?
A7: This is due to increased sales of neurovascular embolization coils using hydrogel for brain
aneurysm treatment and higher sales of "Sofia", the aspiration catheter for treatment of acuteischemic stroke.
Q8: With revisions to US acute ischemic stroke guidelines, the use of devices is now extended toup to 24 hours after a symptom onset. Is it correct to think that these revisions are propellingmarket growth?
A8: As you indicated, guideline revisions extend the window time for device use from 6 hours aftera symptom onset to 24 hours, which has led to significant growth on the acute ischemic stroke
device market.

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 CorporationFebruary 12, 2019
Q9: For the neurovascular business, you indicated that sales of stent retriever device for use inacute ischemic stroke treatment will grow in Japan through a sales alliance with anothercompany. What strategies are you considering for overseas markets?
A9: We will continue to deliberate strategies for expansion into overseas markets.
Q10: Do you forecast FY2018 fourth quarter SG&A expenses will increase compared to the thirdquarter?
A10: The normal pattern for us is that SG&A expenses and research and development expenses
tend to be slightly higher in the fourth quarter compared to other quarters. As such, we
forecast that FY2018 fourth quarter SG&A expenses as well as research and development
expenses will increase slightly compared to the third quarter.

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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.