Value of the Blood and Cell Technologies Businessin the Terumo Growth Strategy

May 12, 2022
Shinjiro Sato
President and CEO
Terumo Corporation

Safe Harbor for Forward-Looking Statements and Use ofDocument
Among the information that Terumo discloses, the forward-looking statements including financial projections arebased 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 thoseforecasts 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.
The market share information in this presentation is partly derived from our own independent research.
Information about products (including products currently in development) which is included in this material is notintended to constitute an advertisement or medical advice.
Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp©TERUMO CORPORATION

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Balanced Growth With All 3 Companies: Aspiration of GS26
Growth potential of each company inour Mid-to-Long term strategy as GS26

Bloodand CellTechnologies

MedicalCareSolutions

GS26 growth(Annual Rate)

FY2021*
Revenue703
billion yen

CardiacandVascular

Therapeutic business expansion
Stroke, aortic, peripheral, cancer
Radial procedure popularization

Alliance Business
Diabetes＊Year ended March 2022

©TERUMO CORPORATION

High-single digit

Blood and Cell growth areas
3 / 13Mid-single digit

Nearlydouble-digit

Portfolio Growth Trajectory
Acquisitions

Divergence from sharedtechnologies
1960s1970s

1921
Thermometer

Intervention

Cardiac andVascularInfusion

Medical CareSolutions

Syringe

Shift todisposabledevicesAcquisition

Blood bag
Instruments©TERUMO CORPORATION

4 / 13

Blood and CellTechnologies

Blood and Cell Technologies Business Growth Trajectory(Sales revenue; 100M JPY)
1,400
Blood bag price erosion (US)1,200

Reveos, TACSI (EU)Spectra Optia (Japan)

1,000

400

Pharmaceuticals, others
Cell Processing

CaridianBCT (US)Therapeutic Apheresis(1) Realignment,
strengthening

800600(2) Returnto growth
Deceleration(3) Growth
acceleration

Bag with leukocyte removal filter(Japan)Apheresis collection

Slowing ofgrowth2000

FY 2000 01©TERUMO CORPORATION

Whole blood collection

0203040506

0708

09

101112135 / 131415

16171819202122232425 2026

Characteristics of Blood and Cell Technologies Portfolio
Based on inherent Terumo
strengths

Strengthened position through BCT
acquisition

Competitive with global players

・・・
Competition
・・・ No US giants present
Technologies ・・・ Hardware (centrifugation) + Consumable + Software
Blood centers, hospitals/Medical Ins.,
Customers
・・・ Pharmaceutical firms/Research Ins. /National Ins.
Others・・・ Business model (Razor & Blades)
Markets©TERUMO CORPORATION

Presence globally and in emerging markets
Market Leadr in US

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‘Ambidextrous’ Management: Both Exploitation and Exploration＋Exploitation
Blood Bag

Apheresis
Collection

Exploration
Source plasma

Apheresis
System from collection tomanufacture for cell therapy

Automation

Bloodcenters＋ Hospitals

PharmaCompany＋(Hematology dept.)©TERUMO CORPORATION

7 / 13＋

Researchinstitution

Expand the Apheresis Principle for New Therapy
ACD-A（Anti Coagulation Liquid）

PlasmaCollection Bag

Pump

Patient／Donor©TERUMO CORPORATION

Centrifugal
Separation

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Examples;•Autologous Cell Transplantation;
To collect patient’s peripheralstem cell•

Allogeneic Cell Transplantation;
To collect peripheral stem cellfrom a donor•

CAR-T Therapy; To collectpatient’s mononuclear cell
including lymph corpuscle•Plasma Exchange Therapy; To
filtrate and remove Patient’splasma

Market Potential of New Fields$800M scale globally/Annual 8-10% growth constant

SourcePlasmaSustainable market (use for many rare diseases, long life cycle, no generics)
Growth from US

key is establishment of collection ecosystem

Expand application to autoimmune diseases
Increased demand for immunoglobulins

Enormous cell and gene therapy pharmaceutical market(74B USD; over 20% growth*1)

CellTherapy

Cell processing market 20B USD; double-digit growth *2
Nearly 60% of cell therapy drugs are collected using apheresis
Emergence of new cancer drugs (CAR-T, etc)
Source: Internal Analysis*1; Forecast 2030, Arthur D Little presentation September 2, 2020
*2; MarketsandMarkets Cell Therapy Technologies Market- Global Forecast to 2021 and 2023

©TERUMO CORPORATION

9 / 13Innovation That Best Leverages the Core Technology ofCentrifugation
Competitive advantage comes from technology that enables faster, moreaccurate and higher productivity
Spectra Optia
COBE Spectra
Rika

Plasma Donation System

Componentcollection system

Trima Accel
Componentcollection system
Centrifugal apheresis
system©TERUMO CORPORATION

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Source plasmacollection system

Plasma Innovation BreakthroughThe quintessential ‘solutions business’ Beyond supplying a single product• Integrated solution that can revolutionize
customer (Ex: CSL) competitiveness

Built Ecosystem toAddress Unmet Needs
State-of-art
automation
production

 Build and operate an ecosystem based on

Source plasma
market
800M USDCAGR 8-10%

partnership (Cutomization) with pharma companies
 KSF: Can efficiency, productivity, and convenience
be continuously improved ?

Commercialization
partnerships

Trusting relationship with Customer©TERUMO CORPORATION

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Innovativeplatform

Digital platform

Strengthen Business Model
Keep the “Razor and Blades” model, but strengthen service
Quintessential TBCT model
Performance

Performance, cost-efficiency

HardwareConsumables

Rika

CircuitBottle, etc
Donor center

Service, Software

Value throughintroducing a digital ecosystem©TERUMO CORPORATION

12 / 13

Productivity
SafetyUsability

Outlook: Sales and Adjusted Operating Profit

Copy from 5-Year Growth Strategy with a 10-Year Vision (FY2022-FY2026), “Blood and Cell Technologies company” 12Sales

Adjusted Operating Profit

Near double-digit growth

Double-digit growth

FY16

FY21

Blood and Beyond

 Plasma Innovations
 Cell therapy
 Therapeutic apheresis

Equipment and Beyond Whole blood automation
 Veda Solutions©TERUMO CORPORATION

Disrupt the market
Double Digit
Mid- Single Digit
Double Digit
Double Digit

FY16

FY26

FY21

FY26

Operational Excellence•Utilize modernized enterprise platforms•Capture the value from Operational Transformation•

Transform investment from Plasma Innovation to fullportfolio•

Strengthen lifecycle management

13 / 13Synergies with Terumo Group in Advanced Fields
Invenst inInnovation•

Made mid-term invest in innovation under the umbrella of Terumo which was
unable during private equity

Production
technology••

High volume, stable production of consumables
Production innovation (automation, labor-saving, digitalization)

Development
technology••

Rika soft set (consumable) is the same used in peritoneal dialysis
Hollow-fiber technology used in bioreactor

Qualitymanagement••

QMs (Quality Management System) that brings together diverse technology elements
Multiple supplier management

Business model••

Evolved Deviceuticals model
B2B w/ Alliance; Share key strategy with CDMOOthers••Global production optimization, strengthening of three-site production system
Inventory optimization and settlement reduction through S&OP advancement©TERUMO CORPORATION

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Blood and Cell Technologies Business Objectives
Aspirations
Provide compelling and accessible innovations globally that unlock
the power of blood and cells to improve patient outcomes andserve unmet medical needs“Unlocking Potential of Terumo Blood and Cell Technologies”

Unique positioning is a natural result
Blood and cells share the same roots
Blood and Cell Technologies Company is the global leader in its field
Alignment with Purpose
Provide care that accompanies
individual patient lives©TERUMO CORPORATION

Help create sustainable
healthcare systems
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Spread healthcare technologies andservices, and improve access to healthcare