Financial Results for the Third Quarter ofFiscal Year Ending March 31, 2023 (FY2022)

February 9, 2023

Naoki Muto

Chief Accounting and Financial Officer
Terumo Corporation

Safe Harbor for Forward-Looking Statements and Use of Document
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 noted that actual results may
differ from those forecasts or 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 ofcompetition. Information about products (including products currently indevelopment) which is included in this material is not intended to constitute anadvertisement or medical advice.
©TERUMO CORPORATION

2 / 26

Highlights
Revenue
Highest-ever as a three-month result
All regions including China grew year on year even when excluding FX

Operating Profit
Exceed 30% growth year on year and much more growth quarter on quarter
Assertive in pricing with expanding segments and regions
Portfolio rationalization (nutrition business) as well as Q2

Revision of FY22 guidance
Reflect FX impact to sales (Q4 guidance rate; USD 130JPY/Euro 140JPY)
Downward profit due to macro environment impact and progress of new driver©TERUMO CORPORATION

3 / 26

P&L Results
Revenue: Highest-ever quarterly and Q3 YTD revenue
Operating profit in Q3 stand alone increased significantly both YoY and QoQ, including profit from sale of the nutrition business that waspart of HCS in TMCS
100M JPY

FY 21 Q3 YTD

FY 22 Q3 YTD

5,235
2,788

6,180
3,183（%）(53.3%)(51.5%)

1,463

1,785（%）(27.9%)(28.9%)

375456（%）(7.2%)(7.4%)-6945-7935（%）(18.0%)(15.1%)

1,072

1,096（%）(20.5%)(17.7%)

930921（%）(17.8%)(14.9%)

717

702（%）(13.7%)(11.4%)

111JPY/131JPY

136JPY/141JPY

Revenue
Gross Profit
SG&A Expenses
R&D Expenses

Other Income and Expenses
Operating Profit
Adjusted Operating Profit
Profit before Tax
Profit for the Year
Average exchange rate (USD/EUR)©TERUMO CORPORATION4 / 26

Change18%14%22%22%-1%2%-1%-2%

Changeexcluding FX
impact6%3%
9%8%-6%-6%

FY21 Q3

FY22 Q3

1,788
926

2,147
1,114

(51.8%)(51.9%)

507

615(28.4%)(28.6%)

128

159(7.2%)(7.4%)

-5
286

35
375

(16.0%)(17.5%)

330

392(18.5%)(18.2%)

278

375(15.5%)(17.5%)

217

299(12.1%)(13.9%)

114JPY/130JPY 142JPY/144JPY

Change
20%
20%
21%
24%
31%
19%
35%
38%

Operating Profit Variance Analysis (Q3)
(100M JPY)
G/P increment by sales increase:375Gross margin:

Pricing
G/Pincrement
bysalesincrease

Grossmargin

+10

SG&A
Reimbursement
price, etc.

Because of demand recovery and new products

FX

Continuous macro environment impact

R&D

Price:
Price increase doubled compared to Q2-8

SG&A, R&D increase:
Enhanced SG&A control
FX:
Appreciating yen at end of Q3

FY21 Q3 FY21 Q3
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

FY22 Q3 FY22 Q3
Adjusted Operating
Operating Profit
Profit5 / 26

Operating Profit Variance Analysis (Q3 YTD)
(100M JPY)

G/P increment by sales increase:
Because of demand recovery and new products
Gross margin:
Continuous macro environment impact

Gross Pricing
margin +17

G/P
increment
bysalesincrease

SG&A

Reimbursement
price, etc.

Price:FX
R&D

Assertive in pricing with expanding segments
and regions in Q3-22

SG&A, R&D increase:
Promote SG&A control
FX:
Appreciating yen at end of Q3

FY21
FY21
Q3 YTD Q3 YTD
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

FY22
FY22
Q3 YTD Q3 YTD
Adjusted Operating
Operating Profit
Profit6 / 26

Revenue by Region

C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Interventional Systems, CV: Cardiovascular, TA: Terumo Aortic (Vascular Graft), HCS: Hospital Care Soplutions, PS: Pharmaceutical Solutions

FY22 Q3 YTDYoY change

Revenue (100M JPY)
FY22 Q3
YTDRegionalbreakdown

25%

Q3

1%

YTD sales turned to increase year-on-year,driven by TMCS with storong sales in PS anddemand recovery of HCS

875
1,040
1,186

14%
(5%)

Sales increase in all companies excluding
FX, driven by TBCT. Steady growht in C&Vand TMCS

1,311
1,612
2,124

32%
(8%)

Double-digit growth excluding FX in TA,
Neuro and Blood center business. TIS grewwith high-single digit

China13114518333444656627%(9%)

TIS and Neuro grew close to double-digit.
Blood center business grew double-digit

Asia andOthers

167
212249482586
733

25%
(10%)

C&V and TBCT grew. TIS and CV maintained
double-digit growth excluding FXEuropeAmericas

9%12%( ) FXN

1,483
1,550
1,570

FY20
Japan FY21FY22FY2219%34%

Q3 YTD

Comments©TERUMO CORPORATION

548526558320357
4144875497437 / 26growth excluding FX. China grew high-single digit
C&V: 6%Segment profit improved both YoY and QoQ due to FX and expense control
Q3 YTD

Q3Comments( ) FXN

TIS:

3,589
2,944
Revenue

2,384
+22%
(+6%)

890

1,001

1,235

Segment
ProfitProfit%

560

240

215

CV:

Number of procedures in Japan not fully
recovered due to COVID-19 impact

+46

TA:

Strong revenue of Thoracic stent graft RelayPro,
expanded application in Japan market. Thoraflex
Hybrid and other products also strong+55

Profit:Improvement due to FX and expense control307+42%

FY20

FY21FY22FY20FY21FY2224%25%

23%27%22%25%©TERUMO CORPORATION+441+103836+16%(+0%)

Q3 YTD
YoY

NeuroChina buisiness increased due to distribution
vascular: network expansion

+23%

723

Expanded sales of PTCA guidewire including new
products in the therapeutic field, closure device
and sheath in access(100M JPY)

8 / 26

Japan demand showing signs of recovery PS: New products added, rapid growth
TMCS: HCS:
Pricing action in Japan to offset macro environment impact(100M JPY)

Q3 YTD

Q3Comments( ) FXN

1,290

1,387 1,455

Revenue+5%(+2%)

472

468

517+11%

205

193
126

Segment
ProfitProfit%-35%(-27%)

8859

FY20

FY21

FY22

FY20

FY21

FY2216%

14%9%

19%

13%9%

©TERUMO CORPORATION

HCS
Hospital CareSolutions:

In infusion area, medical devices anddrugs are showing signs of recovery inJapan. Adhesion barrier also expanding.
November 2022, medical device priceincrease also contributing

+30

LCS
Life CareSolutions:

Revenue of SMBG dropped due toseverer competition. Thermometer andblood pressure monitor demand
recovered in Q3-12PS
PharmaceuticalSolutions:

Sales launch of the combination product“G-lasta subcutaneous injection 3.6mg
bodypod” we jointly developed withKyowa Kirin Co., Ltd.

Profit:Expanded macro environment impact inJapan in areas including rising electricity
prices and continuous FX impact.
Medical device price increase in Japanfor HCS etc. from November

45-25%Q3 YTDYoY

9 / 26+49

Blood centers outside Japan strong, maintaining double-digit growth excluding FX
Update for plasma innovation; IDE approval for nomogram ver.2 last weekend

TBCT:(100M JPY)
Q3 YTD

Q3Comments( ) FXN

Blood Centers:

1,134
Revenue

810

902
+26%
(+10%)

291

319

394

Apheresis:

+23%

144

172
129

Segment
ProfitProfit%-25%(-26%)

56

54

38-30%

FY20

FY21

FY22

FY20

FY21

FY2218%

19%

11%

19%

17%

10%

©TERUMO CORPORATION

Outside Japan remains strong. Sales
increased in products including
component collection kits and whole
blood collection automation innovation+180

Sales expansion due to increasing
number of procedures using therapeutic
apheresis and hematopoietic stem cellcollection+42

Cell Processing:

Steady demand from continuous
growth in cell therapy

Profit:In the process of launching the newbusiness, continuous macro
environment impact

10 / 26

Q3 YTD
YoY+10Guidance Revision（ ）excluding FX

Revenue

7,033

FY22
Previousguidance(B)7,750Operating profit

1,160

1,320

1,220（%）

16.5%

17.0%

15.0%

Adjusted operating profit

1,344

1,510

1,430（%）

19.1%

19.5%

17.5%

888

1,000915

125JPY/135JPY
125JPY/135JPY

135JPY/140JPY
130JPY/140JPY

FY21
Actual(A)Amount($100M)

Profit for the year
Annual guidance rate (USD/EUR)
Q4 guidance rate (USD/EUR)

FY22
Revisedguidance
(C)
8,150

Revisionamount(C)-(B)

YoY(C)÷(A)+400+16% (+5%)-100+5% (-2%)-80+6% (-3%)-85+3%（ ）excluding FX

Revenue
By company
Amount($100M)

FY21
Actual
(A)

FY22
FY22
Revision
Previous Revisedamountguidance guidance(C)-(B)(B)(C)

Adjusted operating profit
YoY(C)÷(A)FY21
Actual
(A)

FY22
FY22
Revision
Previous Revisedamountguidance guidance(C)-(B)
(B)
(C)

YoY
(C)÷(A)

C&V

3,971

4,445

4,752+307+20% (+7%)

932

1,134

1,115

-19+20% (+3%)

TMCS

1,853

1,923

1,933+10+4% (+1%)

236

223

171-52-28% (-22%)

TBCT

1,206

1,380

1,463+83+21% (+4%)

208

182

151-31-28% (-29%)©TERUMO CORPORATION

11 / 26

Dividend Guidance Revision
Achieve 30% dividend payout ratio
FY22 annual dividend of 40 yen (2 yen increase from the previous guidance)
Previous guidance (Q2)

Current guidance

Dividend / share (yen)38.0 yenInterim 19 yen
Period end 19 yen

40.0 yenInterim 19 yen
Period end 21 yen

Dividend payout ratio

28.4%

32.8%

*FY22 Revised Guidance Profit for the Year: 91.5 billion yen; EPS: 121.90 yen©TERUMO CORPORATION

12 / 26

New Measures to Raise Corporate Value
More assertive growth strategy
More assertive M&A promotion
Focus areas: While maintaining multidirectional perspective, focus on areas such as Vein,
CDMO and Diabetes

Accelerate profitability improvement
Continue worldwide price policy review in FY23
Get VC2 results earlier to fight inflation pressure

Capital policy reinforcement
Transition from dividend payout ratio toward total return ratio
Improve capital effciency/Raise financial leverage

Sustainability management
Establish Sustainability Management Committee
Implemantation of future corporate value targets to executive officers©TERUMO CORPORATION

13 / 26

Reference©TERUMO CORPORATION

14 / 26

Product Pipeline and Major Topics
Major Product Launch, Approval Status
Field
TIS

GeneralDrug-eluting coronary stent

Neurova
Flow diverter stentscular

*C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Terumo Interventional Systems, TA: Terumo Aortic (Vacular Graft), HCS: Hospital Care Solutions, LCS: Life Care Solutions

Till FY21(Complete all)FY22Complete / Update

FY23 and beyond

Ultimaster Nagomi

Japan sales

EU launch

Asia, Latin Americalaunch

FRED X

EU, US sales

US sales expansion, regional expansion

Product nameTA

Thoracic aorta stent graft

Relay Series

HCS

General infusion pump

Terufusion infusion pump 18
modelLCSTBCTPatch insulin pump
Cell expansion system

Medisafe WITH series
Quantum Flex

EU sales,Aneurysm indication
approval in US, JapanIn US, dissection andtrauma; in Japan,
dissection indication
approved

Additional models,
RelayBranchclinical trials conductedJapan sales

Launch in Asia

Launch in EU,Latin America

Version-up model
Japan launch

AID system collaboration
with Diabeloop,
Planning regional
expansion

Current model
Japan, EU sales
Quantum
global sales

Launch Quantum Flex Cell processing businessaims for double-digit growth
additional model

FRED X

RelayPro

Major Topics• Group: Finished acquisition of treasury stock and cancelled shares based on BOD decision (December 2022)• C&V: Ultimaster, first stent to receive the mention 1-month DAPT in the reimbursement conditions in France(December 2022)• TMCS: New indwelling needle Surflo ZERO launched (January 2023)©TERUMO CORPORATION

15 / 26

Revenue by Segment and Region©TERUMO CORPORATION

16 / 26

Quarterly Trend of Revenue and Operating Profit
Revenue: 20% growth YoY in Q3, highest-ever for a quarter. 4% growth QoQOperating profit: 31% growth YoY in Q3. 47% growth QoQ
2,060

1,973

1,788

1,729

1,717

(100M JPY)

2,147

1,798
1,652

1,653

1,520

TBCT（Revenue）

1,313

TMCS（Revenue）
C&V（Revenue）
Total（Operating Profit）

181

362304238

FY20 FY21 FY22Q1©TERUMO CORPORATION

296334255

FY20 FY21 FY221Q2286375231

FY20 FY21 FY221Q317 / 26215

FY20 FY21 FY221Q41

P&L (QoQ)(100M JPY)

Revenue

FY21 Q3(Oct-Dec)

Q4(Jan-Mar)

FY22 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

1,788

1,798

1,973

2,060

2,147

Gross Profit

926 (51.8%)905 (50.3%)

1,016 (51.5%)

1,054 (51.1%)

1,114 (51.9%)

SG&A Expenses

507 (28.4%)

528 (29.4%)

566 (28.7%)605 (29.4%)

615 (28.6%)

R&D Expenses

128 (7.2%)

144 (8.0%)

141 (7.1%)

157 (7.6%)

159 (7.4%)

Other Income andExpenses-5-18-6-3735

Operating Profit

286 (16.0%)

215 (12.0%)304 (15.4%)

255 (12.4%)375 (17.5%)

Adjusted OperatingProfit

330 (18.5%)

273 (15.2%)

359 (18.2%)

345 (16.8%)

392 (18.2%)

114 JPY
130 JPY

116 JPY
130 JPY

130 JPY
138 JPY

138 JPY
139 JPY

142 JPY
144 JPY

Quarterly
Average Rate

USD
EUR

©TERUMO CORPORATION

18 / 26

SG&A (QoQ)(100M JPY)
FY21 Q3

Q4

FY22 Q1

Q2

Q3(Oct-Dec)(Jan-Mar)(Apr-Jun)(Jul-Sep)(Oct-Dec)

Labor

255

256

298

312

316

Promotion

4445

464452Logistics

3941

44

47

49

Depreciation

51

54

56

59

60

Others

118

132

123

142

138

SG&A total

507

528

566

605

615

（%）

(28.4%)(29.4%)(28.7%)(29.4%)(28.6%)（%）(7.2%)(8.0%)(7.1%)(7.6%)(7.4%)（%）(35.5%)(37.3%)(35.8%)(37.0%)(36.0%)

R&D

128

Total

635

144
672

141
706

157
761

159
774

Quarterly

USD

114JPY

116JPY

130JPY138JPY

142JPY

Average rate

EUR

130JPY

130JPY138JPY

139JPY

144JPY©TERUMO CORPORATION

19 / 26

SG&A (YoY)(100M JPY)
FY21
Q3 YTDSalaries & Wages
Sales Promotion
Logistical Costs
Depreciation andamortization
OthersSG&A Expenses Total（%）

R&D Expenses（%）

SG&A Expenses Total（%）©TERUMO CORPORATIONFY22Q3 YTD

+/-

753
114
117

926
142
140

172
2724149

175

330
1,463

402
1,785(27.9%)

Change Change
vs. FY21 excluding
Q3 YTD FX impact

456(7.2%)(7.4%)

1,837

2,241(35.1%)(36.3%)

FY22 Q3+/-

23%
24%
21%

7%
13%
9%

255
44393165249618102618%

9%

5160

919%

73323

22%
22%

11%
9%

1185071386152010817%21%3124%

13822%(28.9%)

375

FY21 Q3

Changevs. FY21Q3(28.4%)

81404

22%

22%

20 / 268%8%

24%
17%26%(28.6%)

128

159(7.2%)(7.4%)

635

774(35.5%)(36.0%)

Adjusted Operating Profit amountOperating Profit

FY 21
Q3 YTD945

FY 22
Q3 YTD935

FY21Q3286(100M JPY)
FY22Q3375

118

144

3949

9

175-32

1,072

1,096

330392Adjustment 1. Amortization of
acquired intangible assets
Adjustment 2. Non-recurring profit or loss

Adjusted Operating Profit<General examples of adjustment items>• Acquisition related cost • Impairment loss
• Lawsuit settlement• Nonlife insurance income• Restructuring loss • Loss on disaster

Adjustment 2. Major one-time profits & losses
Restructuring loss
Goodwill amortization related to sale of part ofcell processing businessProfit from sale of nutrition business
Others©TERUMO CORPORATION• Other one-time profits & losses

FY 21
Q3 YTD

21 / 266

FY 22
Q3 YTD
16-36

2-394

CAPEX, Depreciation and R&D Expenses

692

FY22Q3 YTD
511(100M JPY)
(100MFY22JPY)
Guidance
750484532474635

157

146

161

144

173

320338371

330462FY19FY20

FY21CAPEX

895

772

Depreciation
Amortization ofacquired intangible assets
Others477

CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not included in Depreciation

FY22 Q3YTD (51.1 BJPY): Continued investment mainly for TIS, Neurovascular, PS, and Blood & Cell
Technologies in production capacity, source plasma collection, R&D, as well as IT infrastructure (SAP)“CAPEX” FY22 guidance revision: Due to progress of projects

R&D Expenses

FY19

FY20

FY21506

491

518

FY22 guidance revision: Revison of FX rate
©TERUMO CORPORATION

22 / 26FY22
Q3 YTD456

FY22Guidance
600

Cash Flows (Q3 YTD)

524

921

2,053

Cash at the endof FY21
©TERUMO CORPORATION

Profitbeforetax(100M JPY)

Investing & Financing CF-1,177

Operating CF+749
248

Incometaxes, etc.

Depreciation
andamortization

448

Working
511
capitalgains andCAPEX
losses501
279
Acquisition
oftreasury Dividends
sharesCAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S
23 / 26

113

Others1,624

Cash at the endof FY22 Q3

Cash Flows (Q3)
Investing & Financing CF-647

Operating CF+145

181
375

Profitbeforetax

Depreciation
andamortization

109

Incometaxes, etc.

302
183
Workingcapitalgains and CAPEX
losses©TERUMO CORPORATION

357
143

2,126

Cash at the endof FY22 Q2(100M JPY)

Acquisition
oftreasury Dividends
sharesCAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S
24 / 26

35

Others1,624

Cash at the endof FY22 Q3

FY22 FX Impact Breakdown (Flow, Stock)
FX impact vs FY21 +8.4B JPY
Flow Q3 YTD +9.0B JPY: EUR, CNY appreciation positive impact

EUR

FY21 Q3 YTD
Average rate during
period131

CNY

17.3Rate (JPY)FY22 Q3 YTD
Average rate during Variation
period141
1019.92.6

Stock Q3 +2.5B JPY, Q3 YTD -0.6B JPY: FX impact from elimination of unrealized profit oninventory assets• Yen appreciation progressed in December for positive effect in Q3 Annual impact reduced to minus 0.6B JPYUSD

FY22 Q3 YTD
Average rate during
period136

EUR

141Rate (JPY)©TERUMO CORPORATIONFY22End of December

25 / 26Variation

133-4142

1Foreign Exchange Sensitivity(100M JPY)

Annual inpact of 1 JPY depreciation
USD

EUR

CNY

Revenue

20938

Adjusted Operating Profit

1516Europe
EUR Zone
OthersAsia<Reference> Impact when JPY depreciation 10%

Adjusted Operating Profit©TERUMO CORPORATIONNorthAmerica

Latin
America

71074

26 / 2613CNY
31Others
36