Growth Strategy in Japan
Terumo Corporation
President and CEO
Shinjiro SatoNovember 8, 2018

Mid‐ to Long‐term Growth Strategy Progressing Steadily
Win inSelectedMarkets

OfferComprehen‐sive Value inJapan

Accelerate
Innovation

Select growing segments and segments whereTerumo owns a competitive advantage
Interventional systems, neurovascular, alliance,therapeutic apheresis

 Launched Ultimaster Tansei
in JP,EU, and Aisa
 Made an agreement on acquisition ofChinese DES company
 The WEB aneurysm embolization system
supported by FDA committee Expanded investment in Terumo
Yamaguchi D&D

Leverage the leading position and pursue
growth opportunities

 Progress of Growth strategy
in Japanese market

Contribute to future of healthcare withsignificant social impact
Advance core technologies and gain newtechnologies

 Inaugurated WW Inovation Centerin California, US Expanded early‐stage R&D baseat West Coast, US R&D for WEB, Kanshas and AdSpray Commenced R&D for remote monitoring
systems specified for chronic heart failure© Terumo Corporation

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Revenue Growth in Japan for The Past Ten Years Nearly flat since FY2011
Trend of Revenue in Japan (Terumo)(billion yen)200.0

150.0

100.0

50.00.0

FY08

FY09

FY10

FY11

FY12

FY13© Terumo Corporation

FY14

FY15

FY16

FY172018/11/82/13

Japan Is The Biggest Market for Terumo Where Its Business Is
General Hospital Centric
FY17 Revenue by region

Asia
19%

Europe20%

FY17 Revenue by business
Blood
Manage‐ment 6%

Japan
32%

Cardiac andVascular 28%

Revenue %in Japan

Revenue %by region

GeneralHospital

Americas29%

65%© Terumo Corporation

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Profitability of General Hospital Has Recovered
Adjusted operating margin for General Hospital Company
20%

15%

10%

5%0%
FY10

FY11FY12FY13

FY14

FY15

FY16FY17

Great timing for the company to refocus on its growth in JP© Terumo Corporation

2018/11/8

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Deploy Large‐scale Products in Each Business Arena
Utilize all assets incl. products, sales infrastructure, and corporate functions

Lead the industry with differentiated products

Provide solutions to new needs at the medical front

Introduce successful outcomes of acquisition as well as overseas R&Ds to Japan

Make full use of external technologies and B2B channel© Terumo Corporation

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Utilize Digital Health in Intensive Care
Sell Japan's only prescription‐linked pump

Differentiated products
Solution to new needs
Lever OJP M&A and R&D
External techs and B2B

Promote further medical safety and workflow efficiency throughautomated setup for administration

ICU management
Automated prescription
transferring

Anesthesia management

Electronic
medical records
Syringe pump

Automated recording

Infusion pump

© Terumo Corporation

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Entry into Therapeutic Arena of Diabetes Management

Differentiated products
Solution to new needs
Lever OJP M&A and R&D
External techs and B2B

Own lineups of three types of devices, SMBG, CGM, and insulin pumpContinuous Glucose Monitoring(CGM)

Insulin pumpBlood glucose alert function
gives optimized control for glucose levels

Japan's first small‐sized lightweightpatch pump

© Terumo Corporation

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Provide Pharmaceutical Solutions

Pain managemant

Differentiated products
Solution to new needs
Lever OJP M&A and R&D
External techs and B2B

Drug and Device

Enhance product lineup by
adding Fentanyl injection

Acelio I.V. solution is the
only such product in Japan

Offer multimodal analgesia withcombinations of different
mechanisms of action© Terumo Corporation

Design and manufacturing
optimized for biologics

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Expand Therapeutic Devices for Intervention
Therapeutic devices forcoronary intervention

Differentiated products
Solution to new needs
Lever OJP M&A and R&D
External techs and B2B

Therapeutic devices
for neurovascular intervention

Drug‐eluting stent

PTCA balloon

Upgraded delivery performance
Made it approachable to complex lesions
Utilize synergy w/ imaging devices

Full lineup and entry into therapidly growing ischemic stroke market© Terumo Corporation

2018/11/8

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Seek for Less Invasive Treatment in the Area of Surgery

Differentiated products
Solution to new needs
Lever OJP M&A and R&D
External techs and B2B

Stent graft for thoracic aortic
aneurysm

Oxygenator

CAPIOX NXReduced priming volume by 30%
Adult oxygenator w/ world's lowest
priming volume

Precise deployment w/ superior
comformity to curved aorta© Terumo Corporation

2018/11/8

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Expand from Blood Center Business to Therapeutic Apheresis
and Cell Therapy

Hematopoietic stem cell transplant

Differentiated products
Solution to new needs
Lever OJP M&A and R&D
External techs and B2BRegenerative medicine systems

UVtreatment

Chronic GVHD* side‐effect solution*One of complications caused by organ transplant

Make the de facto standard of production
technology in regenerative
medicine and cell therapy© Terumo Corporation

2018/11/8

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To Fully Utilize Overall Distinctive Strength in Japan
Strategically promote projects through “Scrum 2018”1

Promote collaborative sales approaches across the businesses

2

Appeal for Terumo brand3

Enhance corporate infrastructure (Regulatory affairs, etc.)

4Commence disease‐oriented approach (Cancer, Foot care, Chronic heart failure, etc.)© Terumo Corporation

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IR ContactTerumo CorporationCorporate 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.

© Terumo Corporation

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