Terumo Corporation
November 10, 2016
Q&A Session at the Financial Results Briefing
for the First Half of the Fiscal Year Ending March 31, 2017
Outlined below are the principal Q&As from the financial results briefing of November 10, 2016.
Certain details have been expanded or modified to provide readers with a deeper understanding ofTerumo Corporation’s performance and activities.

Q1: In the first half, excluding the impact of foreign exchange rate fluctuations, sales growth in theCardiac and Vascular Company was 10% year-on-year versus 12% in the first quarter. Whatfactors slowed down sales growth in the second quarter? What is your forecast for sales in thethird quarter and beyond?
A1: Excluding the impact of foreign exchange rate fluctuations, total sales for the Interventional
Systems (TIS) business and the neurovascular intervention business grew double digits inalmost all regions. In contrast with the first quarter, sales growth slowed slightly in theneurovascular intervention business in China but we expect a recovery in the full fiscal year. In
the TIS business, we forecast double-digit sales growth in the third quarter and beyond.

Q2: The operating margin in the Cardiac and Vascular Company was 27% in the first half, versus
31% in the first quarter. What catalysts in the second quarter sharply impaired your operatingmargin?
A2: In the second quarter, our operating margin dropped about 7 points compared with the firstquarter. A major factor was negative impact from foreign exchange rate fluctuations, whichdragged down the operating margin in this company by 3 points. In addition, loss resulting fromthe recall of Misago reduced the margin by 1 point and the higher SG&A ratio due to the sales
decline took away 2 points from our margin.

Q3: In the first quarter, you saw a large profit contribution from access devices, which was on a parwith Ultimaster. Was profit contribution the same in the second quarter?
A3: Yes, both the Ultimaster and access device sales continued to contribute largely to profit.

Q4: You explained the examples of profit improvement through marketing activities in France andGermany in the first quarter. Are you implementing the same activities in other regions?
A4: We are implementing marketing activities to improve profitability in all regions. We introduced
activities in France and Germany as major examples of our efforts. We are focusing on profit
margins and injecting resources into regions with high selling prices.
1The 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
November 10, 2016

Q5: Can you describe sales trends for the Ultimaster in Japan and globally? In Japan, a 4mmdiameter version was added to the product lineup. What impact has this had on sales? Also,
now that the Ultimaster has been on the market for a full year in Japan, what evaluation has it
received from physicians?
A5: In the first half, global sales for drug-eluting stents, including the Ultimaster, exceeded ¥10billion, a rise of 44% year-on-year. Sales of the Ultimaster, which was launched in October
2015 in Japan, were very brisk, but entering 2016, sales slowed marginally due to the launch ofcompetitor’s product. Nonetheless, we would like to increase sales moving forward as wewiden our product lineup, including the recent addition of the 4mm diameter stent and thescheduled introduction of a 2.25mm diameter stent. Physicians have praised our Ultimaster forgood stent apposition to the blood vessel wall after post ballooning due to the high level of its
flexibility.

Q6: In Japan, one of your competitors has received regulatory approval for their bioresorbablescaffolds. So there is a possibility these products will be launched to the market in the near
future. What impact do you project?
A6: In Japan, physicians tend to try out new products but given the impact on patients they are very
cautious about switching to a new product. The bioresorbable scaffold differs from a metal
drug-eluting stent. This is a completely novel product so we believe that physicians are likely totry out the product but also be extremely cautious at the same time.

Q7: What progress is Terumo making in research and development on the bioresorbable scaffold andhybrid type drug-eluting stent given that both are being concurrently carried out?
A7: We are moving forward with research and development for both products. We are considering
prioritizing development for these two products some time during the current fiscal year.

Q8: I understand your one-off expenses for the factory of Terumo Yamaguchi Corporation areincreasing due to the preparation of mass production system for guidewires. Will these
expenses continue to increase going forward? Also, is my understanding correct that Terumo ispromoting cost reductions by splitting production between the Ashitaka Factory and the factoryof Terumo Vietnam Co., Ltd.? Or do you plan to place priority on Business Continuity Plan(BCP) rather than cost reductions?
A8: Terumo Yamaguchi Corporation was initially constructed as a part of our BCP. Currently, inaddition to being a component of our BCP, the factory plays a role in supporting an increase in2
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
November 10, 2016
production capacity for guidewires, reflecting the rising demand for the products. Costs rise
immediately after investment but we expect this to also have a positive impact on profits owing
to an increase in production and sales volume.

Q9: At the first quarter financial results briefing, you disclosed temporary figures for the impact
from the acquisition of Sequent Medical, Inc. Have you revised the estimate since then? Also,in the second half you plan to record an extraordinary loss in tandem with this acquisition.
What does this extraordinary loss comprise of?
A9: We are currently calculating the accurate impact to our sales and profits. We do not expect aconsiderable divergence from our initial estimate. We expect to post one-off expense toextraordinary loss, which will include costs for reorganizing our personnel system and sales
distributor contracts during the integration period.

Q10: You revised your foreign exchange rate assumptions in tandem with the revision to yourguidance for full fiscal year. However, your guidance for operating income remains the same.
Can you explain this?
A10: Our previous guidance for operating income was ¥35.5 billion in the first half, and ¥39.5
billion in the second half. However, in the first half, we posted operating income of ¥39.4
billion, considerably outperforming our guidance. Meanwhile, we estimate our second half
operating income to be affected by the yen’s appreciation against major currencies andnegative impact from the acquisition of Sequent Medical, Inc. Consequently, we have notrevised our guidance for full-year operating income.

Q11: One of Terumo’s strength is its Transradial Intervention (TRI) related products, which are used
for procedures in which a catheter is inserted from an artery in the wrist. What is thesignificance of the purchase of vascular closure products for Transfemoral Intervention(TFI) ?
A11: TRI is becoming more widely used as a procedure for inserting a catheter into the coronary
artery. However, TFI remains the mainstream procedure for accessing to the location oflesions of peripheral and neurovascular arteries owing to easier access. We would like tofurther strengthen our position in the access devices for peripheral and neurovascularintervention by acquiring vascular closure products for TFI, coupled with our strength in TRI
products.

Q12: In the United States, there is a possibility Obamacare will be eliminated once Trump takes
3The 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
November 10, 2016
office. What impact do you forecast from the new president’s policies?
A12: We will need to examine this on an annual basis. Trump won the election because of support
from the middle class. We are looking at the possibility that Trump will prepare his own safety
net that will replace Obamacare.

4The 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.