Financial Results for the First Quarter of Fiscal
Year Ending March 31, 2022 (FY2021)

August 4, 2021

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 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

2 / 23

Highlights
FY21 Q1 resultsRevenue: Highest-ever quarterly revenue. Steady recovery in demand for Cardiac & Vascular.
Positive FX impact from both USD and EUR
Adjusted Operating Profit: Highest-ever quarterly adjusted operating profit. Although there weresome negative factors as expected, the revenue recovery in Cardiac & Vascular resulted inimprovement of product mix. Moderate expenses usage due to the remaining COVID-19 impact

Upward revision of FY21 guidance
Added 5.0 B JPY to revenue, and 7.0 B JPY to adjusted operating profit on top of the upper limit ofthe previous guidance
Factored in the better Q1 performance than expected. Although negative possibilities still remainsuch as slowdown in the recovery of healthcare demand and supply risk due to lockdown etc.
caused by spread of the new variant, continuous recovery in healthcare demand including thenumber of procedures is anticipated©TERUMO CORPORATION

3 / 23

P&L Results
Revenue: Highest-ever quarterly revenue. Steady recovery in demand for Cardiac & Vascular, especially for TIS. Positive FX impact from both USDand EUR
Adjusted Operating Profit: Highest-ever quarterly adjusted operating profit. The negative impact from volume-based procurement (VBP) in China andlowered production level was as expected. The revenue recovery in Cardiac & Vascular resulted in improvement of product mix. Moderate expenses
usage due to the remaining COVID-19 impact

100 M JPY

FY20 Q1

FY21 Q1

YoY%

YoY% (FXN)

31%
37%

25%
30%

FY19 Q1
1,525852Revenue
Gross Profit

1,313689

1,717943(Gross Profit%)(52.5%)(54.9%)

401

465(30.5%)(27.1%)

R&D Expenses

112117(R&D Expenses%)(8.5%)(6.8%)

5181

1362(13.8%)(21.1%)

Adjusted Operating Profit

217

402

(Adjusted Operating Profit%)(16.5%)(23.4%)

179

360(Profit before Tax%)(13.6%)(21.0%)

Profit for the Year

140

279

(10.7%)(16.2%)(14.9%)

108JPY/119JPY

110JPY/132JPY

110JPY/123JPY

SG&A Expenses(SG&A Expenses%)

Other Income and Expenses
Operating Profit(Operating Profit%)

Profit before Tax(Profit for the Year%)
Average Exchange Rate(USD/EUR)©TERUMO CORPORATION

Change vs.
FY19 Q1

13%
11%(55.8%)

16%

12%

445

4%

(29.2%)

4%

3%

118

-2%

(7.8%)

100%

85%

4292

24%

(19.1%)

85%

73%

339

18%

(22.3%)

101%

288

25%(18.9%)

99%

4 / 2322822%

Adjusted Operating Profit Variance Analysis
Grossmargin(100 M JPY)

Price-12
JP NHI0SG&A

Production
Adjustment

R&D Others

G/P increment by sales increase:
Positive revenue growth in all companies
compared with FY20 Q1 impacted by COVID-19
Gross margin:
Despite the negative impact of lowered
production level as planned for inventory level
optimization, larger positive impact of product mix
improvement from sales increase of Cardiac &Vascular, especially of TIS

FX

MDR0IT-1

Price:
Decline mainly due to VBP in China for TIS
products

G/P
incrementby salesincrease

SG&A increase:
Large increase compared with FY20 Q1 in which
expense usage was slow due to COVID-19

FY20 Q1 FY20 Q1
Operating Adjusted
Profit Operating
Profit

FY21 Q1 FY21 Q1
Adjusted Operating
Operating Profit
Profit©TERUMO CORPORATION

5 / 23FX:
Positive impact from flow mainly by EUR andCNY. Small impact from stockRevenue by Region
Revenue (100 M JPY)
FY21 Q1Regional
breakdown

29%

20%

32%

YoY%

Change vs.
FY19 Q1() FXN

FY19Japan FY20FY21460443492

11%

Europe30025534535%(22%)

46036354450%(46%)

13610215552%(38%)

169
151
182

21%(13%)

Americas

China

9%

Asia and11%Others©TERUMO CORPORATION

7%

15%

18%

14%

7%

6 / 23

Comments on YoY% (C&V: Cardiac & Vascular,
GH: General Hospital, TBCT: Blood & Cell Technologies)
Japan: Double digit growth in GH with solid sales of Allianceand demand recovery of daily use products in General
hospital products as well as Pharmaceutical. Steadyrecovery of TIS and Neurovascular in C&V. Minor decline inTBCTEurope: 30%+ growth in C&V with a strong recovery of TIS,Neurovascular, and Vascular graft. With the positive FX
impact, high single growth in TBCT despite of decreased
convalescent plasma demand, low single digit growth in GH
Americas: 50%+ growth in C&V with a strong recovery ofTIS and Neurovascular. Double digit growth in TBCT
despite of decreased convalescent plasma demand. 20%+growth in GH driven by a recovery in the veterinarianmarketChina: Solid growth in C&V with a strong recovery of TIS.
Double digit growth in TBCT with the positive FX impact.
Double digit growth in GH with a recovery of General
hospital products. Excluding the negative impact in FY20
1H from timing issue for order from distributors inNeurovascular, 30%+ growth in 3 companies total
Asia and Others: Slow recovery in all companies, due tolockdown etc. in some countries. Double digit growth inC&V driven by TIS and TBCT with a certain level ofrecovery. Double digit growth in GH with the positive FX
impactC&V:

Significant revenue increase in all divisions with substantial recovery of procedures especially in US and EU.

Double digit growth in both revenue and profit compared with FY19 Q1 (before COVID-19)(100 M JPY)
Q1Comments() FXN

996

885
673

Revenue+48%(+40%)

294

245
Adjusted
OperatingProfit

Adj. OP%©TERUMO CORPORATION-14% 124(-11%)+137%(+112%)

FY19

FY20

FY2128%18%

29%

Q1 Rev.
YoY

TIS: While the COVID-19 impact remained in Japan, Latin America, andAsia, significant recovery in US and EU. Double digit growth compared withFY19 Q1, despite JP NHI price cut and price erosion due to Chinese VBP
for PCI products+204

Neurovascular: Significant recovery in the number of aneurysm treatments
in US and EU. 15%+ growth compared with FY19 Q1 driven by newproducts and the aspiration catheter+65

Cardiovascular: Steady hardware sales generated by reopening of hospital
investments in addition to significant recovery of procedures in US.
Continuous good momentum in JP driven by hardware such as ECMO.
Close to 10% growth compared with FY19 Q1+28

Vascular graft: Significant recovery of procedures in US and EU. 30%
growth compared with FY19 Q1 driven by new products+26

Adj. +1%
OP: Double digit growth compared with FY19 Q1 as the positive impact
from product mix improvement surpassed the negative impact from Chinese
VBP of TIS products and lowered production level for inventory level
optimization. Moderate expenses usage due to the remaining COVID-19 impact

7 / 23

GH:

Globally driven by daily use General hospital products.
Double digit growth in both revenue and profit compared with FY19 Q1 as well as FY20 Q1(100 M JPY)
Q1

Comments() FXN

398

392

Revenue+12%(+10%)

5252

Adjusted
OperatingProfit

Adj. OP%©TERUMO CORPORATION

43864

General hospital products: Double digit growth driven by daily use productswith a recovery of medical demand in JP, US, and Asia. Special demandfor infection control products ran its course. Despite a minor decline in Asia
compared with FY19 Q1 due to slow recovery, high single digit growth as awhole+26

Pharmaceutical: mid single digit growth in IV solutions although therecovery in demand had been slow and yet to come back to the before
COVID-19 level. Continuous solid momentum in pain management andadhesion barrier. Low single digit growth compared with FY19 Q1+7DM Healthcare: Continuous positive growth in DM since FY20 Q3. While
the special demand for thermometers had peaked out in FY20 Q3, thedemand for blood pressure monitors remain high still+4

Alliance: Continuous double digit growth driven by CDMO business+8+25%(+24%)FY19

FY20

FY2113%13%15%

Q1 Rev.
YoY

Adj. OP: Moderate expenses usage due to the remaining COVID-19 impact

8 / 23TBCT:

Fully mitigated the declining convalescent plasma’s negative impact by solid sales of other products.
Continued increase in revenue and profit with product mix improvement and expense control(100 M JPY)
Q1Comments() FXN

242247

Revenue283+14%
(+9%)

60
Adjusted
OperatingProfit

Adj. OP%©TERUMO CORPORATION26

Q1 Rev.
YoY

Blood center solutions: Double digit growth in whole blood collection
products with a recovery in US and EU. Solid sales of blood component
collection system in US and Asia. Fully mitigated the negative impact fromdecline of COVID-19 convalescent plasma demand as a whole+19

Therapeutic solutions: 30%+ growth in US generated by investment athospitals to support higher number of procedures. High single digit growthcompared with FY19 Q1+12

Cell therapy technologies: Despite the delay in implementation due toCOVID-19 in FY20 1H, recovered in Q3, Q4 and came back to the growthtrajectory. High single digit growth compared with FY19 Q1+539+54%(+30%)FY19

FY20

FY2111%16%21%Adj. OP: Product mix improvement with the demand recovery of Therapeutic solutions andCell therapy technologies surpassed the normalization of product mix due to the recovery inwhole blood collection. Moderate expenses usage due to the remaining COVID-19 impact

9 / 23Major Topics• Selected for the global ESG investment index “FTSE4Good Index Series”
Corporateand “FTSE Blossom Japan Index”• Donated Additional 1 M USD to support the COVID-19 solidarity responsefund for WHO

Cardiac &VascularGeneral
Hospital

Blood & CellTechnologies©TERUMO CORPORATION• Received approval of the additional indication to peripheral artery disease
for intravascular imaging system “OFDI” as the first in JP market

Diagnosis of artery diseaseutilizing “OFDI”• Launched peripheral embolization system “AZUR Vascular Plug” in US• Launched “Flumazenil I.V. infusion” as the first pre-filled type in JP market• Launched continuous glucose monitoring “Dexcom G6 CGM System” in JP

Peripheral embolization system“AZUR Vascular Plug”• Joined Cell and Gene Therapy Catapult Process Analytical Technology (PAT)Consortium

Continuous glucose monitoring“Dexcom G6 CGM System”

10 / 23

Upward Revision of FY21 Guidance(100 M JPY)

Original Guidance

Revised Guidance

Revenue

6,700-6,800

6,850

Operating Profit

1,070-1,130

1,200(%)(16.0-16.6%)(17.5%)

Adjusted Operating Profit

1,240-1,300

1,370(%)(18.5-19.1%)(20.0%)

Profit for the Year820-865

920

Exchange Rate (USD/EUR)

107JPY/128JPY

108JPY/129JPY

Change inamount+50+70+70+55

Factored in the better Q1 performance than expected
Although negative possibilities still remain such as slowdown in the recovery of healthcare demand and supply risk
due to lockdown etc. caused by spread of the new variant, continuous recovery in healthcare demand including thenumber of procedures is anticipated©TERUMO CORPORATION

11 / 23

FY21 Guidance by Company
RevenueAmount (100 M JPY)

Adjusted Operating Profit
YoY%Amount (100 M JPY)

% to Revenue() FXN

Comments
YoY%() FXN() FXN

FY19

Cardiac &Vascular FY20
FY21General
Hospital

25%

3,285

744

23%

17%(15%)

960

25%

1,710

252

15%

1,755

257

15%

250

14%

1,072

151

14%

1,095

191

17%

215

18%

1,170
©TERUMO CORPORATION

869

3,855

1,825

Blood & Cell
Technologies

3,506

4%
(3%)

7%(5%)

12 / 23

29%(21%)-3%(-1%)

13%(5%)

Despite the impact from Chinese
VBP of TIS products, expect
double digit growth in TIS andVascular Graft, and close to 20%
growth in Neurovascular, driven
by sales recovery mainly in US
Alliance, DM and pain
management products are themajor drivers. Though special
demand for Healthcare products
runs its course, expect recovery
in daily use products in General
hospital products andPharmaceutical
Mitigate the declining COVID-19
convalescent plasma therapy
demand by recovery of bloodtransfusion demand, sales
increase in Therapeutic solutions
and Cell therapy technologies

Reference©TERUMO CORPORATION

13 / 23

FY21 New Product Pipeline
Category
Coronary

Oncology

NeurovascularVasculargraft

ProductsRegion Launch

Drug-eluting stentJP

Biodegradable drug-elutingmicrosphere

EU

Peripheral embolization coil

JP

Peripheral embolization plug

USCategory
Generalhospital
products

Launched
PharmaceuticalProductsRegion Launch

Infusion pump

JP

Small size syringe pump

JP

FN syringe (16mm needle)

JP

Launched

Flumazenil I.V. infusion

JP

Launched

Sterile connecting deviceJP

Launched

Flow diverter

EU, US

Balloon guide catheter

EU, USGelclair

JP

Coil assist stent

EU, USContinuous glucose monitoring system

JP

Launched

Insulin patch pumpEU

Launched

100th anniversary thermometerJP

Non-contact data link thermometer

JPAutomated blood processing system

GlobalValue-added services

GlobalStent graft for thoracic aortic
aneurysm

USSurgical hybrid stent graft

USStent graft for abdominal aortic
aneurysm

JPDM andconsumer
healthcare

Blood and celltechnologies©TERUMO CORPORATION

14 / 23

Launched

Revenue by Segment and Region©TERUMO CORPORATION

15 / 23

Quarterly Trend of Revenue and Operating Profit
Revenue: Increased by +31% YoY and by +13% against FY19 Q1. Large increase in C&V by +13% withpositive impact of FX such as EUR
Operating Profit: Product mix improved by C&V sales increase. Better than FY20 Q3, highest-ever quarterly
operating profit(100 M JPY)
1,717

1,800
1,600
1,400

1,548

1,525

1,629 1,653

1,520

1,588

1,652

1,313

1,200

TBCT (Revenue)

1,000

GH (Revenue)

800

C&V (Revenue)

600

Total (Operating Profit)

400
200
0292181362300

FY19 FY20 FY21Q1©TERUMO CORPORATION

271238

FY19 FY20 FY211Q2334244

FY19 FY20 FY211

Q3

16 / 23231

FY19 FY20 FY211Q4

Quarterly Results(100 M JPY)

Revenue

FY20 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)

FY21 Q1(Apr-Jun)

1,313

1,520

1,653

1,652

1,717

Gross Profit

689 (52.5%)

816 (53.7%)

908 (54.9%)854 (51.7%)

943 (54.9%)

SG&A Expenses

401 (30.5%)458 (30.2%)447 (27.1%)

488 (29.5%)465 (27.1%)

R&D Expenses

112 (8.5%)

119 (7.8%)

128 (7.7%)

132 (8.0%)

117 (6.8%)

Other Incomeand Expenses

5-12-21

Operating Profit

181 (13.8%)

238 (15.6%)

334 (20.2%)

231 (14.0%)362 (21.1%)

Adjusted
Operating Profit

217 (16.5%)

296 (19.5%)

372 (22.5%)274 (16.6%)

402 (23.4%)

USD

108 JPY

106 JPY

105 JPY

106 JPY

110 JPY

EUR

119 JPY

124 JPY

125 JPY

128 JPY

132 JPY

AverageRate©TERUMO CORPORATION

17 / 23

Quarterly Results (Operating Expenses)(100 M JPY)

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation & Amortization
OthersSG&A Expenses Total

FY20 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)

FY21 Q1(Apr-Jun)

224
2033
4678
401

232
313649110
458

231353847
97447

240
43
3749119488

249
30
3848
99465

(SG&A Expenses%)(30.5%)(30.2%)(27.1%)(29.5%)(27.1%)(R&D Expenses%)(8.5%)(7.8%)(7.7%)(8.0%)(6.8%)(Operating Expenses%)(39.0%)(38.0%)(34.8%)(37.5%)(33.9%)

112

R&D Expenses

513

Operating Expenses Total
Average Rate©TERUMO CORPORATION

USD
EUR

108 JPY
119 JPY

119
578

106 JPY
124 JPY

18 / 23

128

575

105 JPY
125 JPY

132
620

106 JPY
128 JPY

117

581

110 JPY
132 JPYOperating Expenses(100 M JPY)
FY20 Q1
Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation &Amortization
OthersSG&A Expenses Total(SG&A Expenses%)

R&D Expenses(R&D Expenses%)

Operating Expenses Total(Operating Expenses Total%)©TERUMO CORPORATION

FY21 Q1

YoY

YoY%

YoY%
(FXN)

FY19 Q1

Change vs.
FY19 Q1

2242033249
30
38

25
10
511%
49%
16%

7%
44%
12%

219
49
35

14%
-38%
11%

4648

24%

-1%

455%

78
401

99
465

22
64

28%
16%

24%
12%

97
445

2%
4%

(30.5%)

112(8.5%)

513(39.0%)(27.1%)

117(29.2%)

54%3%(6.8%)

581

118-2%(7.8%)

6913%(33.9%)

10%564(37.0%)

19 / 233%

Adjusted Operating Profit: Adjustments(100 M JPY)
FY20 Q1

FY21 Q1

181351217

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

Adjusted Operating Profit362391402<General examples of adjustment items>• Acquisition related cost
• Lawsuit settlement• Impairment loss
• Restructuring loss
• Nonlife insurance income• Loss on disaster

Main items inAdjustment 2. Non-recurring profit or loss
Business reorganizing cost

• Other one-time profits & losses©TERUMO CORPORATION

20 / 23

FY21 Q1

1

CAPEX, Depreciation and R&D Expenses
FY18FY19FY20

FY21 Q1(100 M JPY)
FY21Guidance

CAPEX
Depreciation

608
440

895
477

772484167
126850530

Amortization of acquired intangible assets
Others

146
294

157
320

150
334

3888155375

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

FY21 Q1 (16.7 B JPY): Continued investment mainly for TIS, Neurovascular, Alliance, and Blood & Cell
Technologies in production capacity and space, R&D as well as IT infrastructure (SAP)FY21 guidance (85.0 B JPY): Other than above, investment for plasma collection and production facilities forvaccine syringes, etc. Controlling investment considering FY21 performance

FY18

R&D Expenses©TERUMO CORPORATIONFY19477506
21 / 23

FY20491

FY21 Q1

FY21Guidance

117

529

Cash Flows360

Operating CF+299
139

110

Depreciation
andamortization

Incometaxes

Investing & Financing CF-439
91
Workingcapital

167
CAPEX

103
Debt
repayment&redemptionof bonds

Profitbefore tax

112
Dividends

2,008

Cash atthe end ofFY20©TERUMO CORPORATION(100 M JPY)

58
Others

1,867

CAPEX = C.i.P. record basis
Cash at the end of each period is equal to “cash and cash equivalents” on B/S

22 / 23

Cash atthe end ofFY21 Q1

Foreign Exchange Sensitivity
Annual impact of 1 JPY depreciation(100 M JPY)

USD

EUR

CNY

Revenue

17835

Adjusted Operating Profit

0515<Reference> Impact when JPY is depreciated by 10%
North
Latin
America America

Adjusted Operating Profit©TERUMO CORPORATION-110EMEA

Asia

EUR

OthersCNY

Others6513233623 / 23