Financial Results for the Fiscal Year
Ended March 31, 2021 (FY2020)

May 12, 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 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.
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 / 28

Highlights
FY20 Q4/Q4 YTD results
Revenue: Highest-ever Q4 revenue. Steady recovery in demand for Cardiac & Vascular while the
COVID-19 impact remained. Increased in General Hospital and Blood & Cell Technologies driven by
products contributing to infection control and therapies for COVID-19
Adjusted Operating Profit: Recovered to single digit decrease in Q4 YTD, despite the negative
impact on the gross profit in 2H from volume-based procurement(VBP) in China and lowered
production level for inventory optimization. SG&A expenses spent as planned in Q4 along with easeof movement restrictions
FY20 annual dividend proposal: 29 JPY, payout ratio: 28.3%

FY21 guidance
Increase in revenue by 9-11%, in adjusted operating profit by 7-12%
Expect recovery in healthcare demand including the number of procedures, while concerns about
COVID-19 impact remain such as a new variant and the pace of vaccination, etc. Secure theincrease in adjusted operating profit, despite the sales activities level to be raised from FY20 as wellas prior investment for a new business©TERUMO CORPORATION

3 / 28

P&L Results
Revenue: Highest-ever Q4 revenue. Despite minor decline in YTD results, the revenue of Cardiac & Vascular showed steady recovery throughout the
fiscal year (C&V revenue YoY% trend Q1: -24%, Q2 and Q3: -2%, Q4: +4%)
Adjusted Operating Profit: Recovered to single digit decrease in Q4 YTD results, despite the negative impact on the gross profit in 2H from VBP in
China and lowered production level for inventory optimization. SG&A expenses spent as planned in Q4 along with ease of movement restrictions

100 M JPY

FY19 Q4 YTD

FY20 Q4 YTD

YoY%

YoY% (FXN)

Revenue
Gross Profit

6,289
3,439

6,138
3,266

-2%
-5%

-2%
-3%

(Gross Profit%)(54.7%)(53.2%)

SG&A Expenses

1,845

1,795

(SG&A Expenses%)(29.3%)(29.2%)

R&D Expenses

506

491

(R&D Expenses%)(8.0%)(8.0%)

Other Income and Expenses
Operating Profit

18
1,106

3
984

(17.6%)(16.0%)

Adjusted Operating Profit

1,250

1,159

(Adjusted Operating Profit%)(19.9%)(18.9%)

Profit before Tax

1,065

971

(Profit before Tax%)(16.9%)(15.8%)

Profit for the Year

852

773

(13.5%)(12.6%)

Average Exchange Rate(USD/EUR) 109JPY/121JPY

106JPY/124JPY(Operating Profit%)(Profit for the Year%)©TERUMO CORPORATION

-3%
-3%
-11%
-7%
-9%
-9%

-2%
-2%
-8%
-4%

FY19 Q4

FY20 Q4

YoY%

1,588
853

1,652
854

4%
0%

(53.7%)(51.7%)

477

488(30.1%)(29.5%)

136

132(8.6%)(8.0%)

4
244

-2
231

(15.3%)(14.0%)

266

274(16.7%)(16.6%)

210

221(13.2%)(13.4%)

183

187(11.5%)(11.3%)

109JPY/120JPY 106JPY/128JPY

4 / 28

2%
-3%
-5%
3%
5%
2%

Adjusted Operating Profit Variance Analysis (FY20 Q4 YTD)
21
144

Gross
margin37
G/P
decrementby salesdecrease

1,250

1,106

61

MDR
7
IT
investment
12

Price
30
JP
Reimbursment
31(100 M JPY)

8

G/P decrement by sales decrease:Significant decline in 1H, especially in Q1,
was mitigated in 2H

FX

35
R&D
74 decrease

19

SG&A
decrease

175

Price:
Increased in Q4 due to the impact of VBP
in China

1,159

984

FY19
FY19
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

Gross margin:
Significant decline in 1H, especially in Q1,
was mitigated in 2H. Remarkable
recovery in Q3 thanks to improved
product mix in all companies

FY20
FY20
Adjusted Operating
Operating Profit
Profit5 / 28

SG&A decrease:
Level of decrease becoming smaller
along with ease of movement restrictions
FX:
Negative impact on elimination of
unrealized profits in inventories in Q4

Adjusted Operating Profit Variance Analysis (FY20 Q4)(100 M JPY)

G/P
incrementby salesincrease
7
47

22

266
244

FY19 Q4 FY19 Q4
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

Gross
margin

26

MDR
0
IT
investment
3

Price
21
JP
Reimbursment
53Gross margin:
Declined due to lowered production level asplanned for inventory optimization and lower
operation at the factory in Philippines impacted by
COVID-19

R&D
decrease
6

SG&A
decrease

2

G/P increment by sales increase:
Positive revenue growth in all companies.
Partially because of COVID-19 impact in FY19
Q4 on Cardiac & Vascular in China (-2.7 B JPY)

11

FX
43
274
231

FY20 Q4 FY20 Q4
Adjusted Operating
Operating Profit
Profit6 / 28

Price:
Significant decline due to new prices fixed in VBP
became effective in China for PCI products in TIS
SG&A decrease:
Level of decrease becoming smaller along withease of movement restrictions mainly in US
FX:
Negative impact on elimination of unrealized
profits in inventories (stock) larger than positive
impact from flow due to rapid depreciation of JPY
at the end of Mar. FY20

Revenue by Region
FY20 Q4 YTD
Regional
breakdown

33%

20%

29%

FY20 Q4 YTD
YoY%

Revenue (100 M JPY)
FY18
Japan FY19
FY20

EuropeAmericas

China

7%

Asia and

11%

Others©TERUMO CORPORATION

Q4 YTDQ4() FXN

1,885
1,963
2,018

462
485
534

3%

1,204
1,211
1,204

322
324
328

1,756
1,914
1,808
462
473
455
688
728
654

460
498
497
134
103
121
181
178
172

Comments (C&V: Cardiac & Vascular,
GH: General Hospital, TBCT: Blood & Cell Technologies)
Japan: Highest-ever revenue with 200+ B JPY. GH showed
continuous growth since Q2, with double digit growth in Q4
driven by Alliance and pumps. Stronger recovery in C&V
quarter by quarter driven by Neurovascular and CV. TBCT
was at previous year level in YTD

-1%
(-2%)

Europe: Continuous growth in C&V since Q2, despite minor
negative growth in TIS through 2H impacted by COVID-19
resurgence. Good momentum in TBCT with high single digit
YTD growth, GH was at previous year level in YTD

-6%
(-2%)

Americas: C&V driven by Neurovascular and Vascular Graft
with double digit growth in Q4, recovery momentum in TIS
mainly in US. Positive YTD growth in TBCT driven by
products for blood centers. GH was at previous year level in
YTD

-4%
(-4%)

-10%
(-9%)
7 / 28China: Close to 20% growth in Q4, compared to FY19 Q4
already impacted hugely by COVID-19, despite the impact
from VBP of PCI products in FY20. Significant recovery in
YTD excluding timing issue for order from distributors in
Neurovascular
Asia and Others: Slow recovery in all companies, due tolockdown etc. in some countries. In Q4, C&V is at previous
year level, recovery in TBCT by single digit growth,
continuous negative growth in GH

C&V:

Turned to positive growth in Q4 along with a progressing recovery in the # of procedures excl. Cardiovascular.
In YTD, Vascular Graft showed positive growth, and TIS and Neurovascular improved to single digit negative(100 M JPY)
Q4 YTD

Q4

Comments() FXN

3,285

3,506

TIS: Progressing recovery with low single digit negative growth in Q2&Q3
and positive growth in Q4, despite the decreased demand among all
products. Recovery in the number of procedures faster in US and JP,
slower in EU. Despite the negative impact of VBP in 2H, significant
recovery in China, compared to FY19 already impacted hugely by
COVID-19

3,285

Revenue
-6%
(-6%)

875

871

901
+4%

809

869

Adjusted
Operating
Profit744-14%(-11%)

229

181

184
+1%

Adj. OP%

FY18

FY19

FY20

FY18

FY19

FY20

25%

25%

23%

26%

21%

20%

©TERUMO CORPORATION

Q4 YTD
Rev. YoY-157

Neurovascular: Negative impact of timing issue for order from Chinese
distributors remained in YTD, though it was normalized in 2H. Double
digit growth in US and JP driven by new products such as “FRED”,
continuous growth in EU along with a progressing recovery in thenumber of aneurysm treatments since Q2-26

Cardiovascular: Decreased demand especially in US and EU due topostponement of procedures. Double digit growth in JP both in Q4 and
YTD, driven by hardware such as ECMO. Accelerated recovery in China
with high single digit growth in Q4-47

Vascular graft: Continuous growth since Q2, strong finish with 5% YTD
growth. Good momentum in US driven by the new product “TREO” despiteremained impact from postponement of procedures in several regions until
Q3. Growth in all regions in Q4 coupled with recovery in China+10

Adj. OP: Despite decline in YTD due to the revenue decline, growth in Q4 with aprogressing recovery exceeded the impact from Chinese VBP of TIS products
and lowered production level for inventory optimization

8 / 28

GH:

Driven by Alliance and infection control products.
Each sub-segment results showed gradually progressing recovery from decreased demand(100 M JPY)
Q4 YTD

Q4

Comments() FXN

1,755
1,658 1,710
Revenue

+3%
(+3%)

399

432

465
+8%

268

252

Adjusted
Operating
ProfitAdj. OP%

257
+2%
(+3%)

45

54

53
-3%

FY18 FY19 FY20

FY18 FY19 FY20

16%

11%

©TERUMO CORPORATION

15%

15%

13%

11%

Q4 YTD
Rev. YoY

General hospital products: The negative impact due to the limited
number of medical examinations in JP and Asia was mitigated byincreased demand for infection control products and pumps.
Continuous growth in 2H driven by pump sales increased against the
backdrop of supplementary budget executed in JP-14

Pharmaceutical: Sales decline in IV solutions was mitigated by solid
sales of pain management products including a new product. Despite
the COVID-19 impact, steady momentum in PD(Peritoneal Dialysis)
with 4% YTD growth and continuous double digit YTD growth inadhesion barrier sales-6

DM Healthcare: Increased demand for Healthcare products including
thermometers in YTD. Continuous growth in DM through 2H despite thesuppression of consultation. Q4 sales of Healthcare products were atprevious year level as the special demand ran its course+16

Alliance: Continued double digit growth both inside and outside JP.
Overall 20%+ YTD growth. High growth in Q4 due to order timing+50

Adj. OP: Despite revenue increase driven by Alliance, minor decline in Q4 due
to lower operation at the factory in Philippines impacted by COVID-19 andselling expenses as well as R&D expenses spent as planned. Positive YTD
growth thanks to improved product mix by solid sales of Alliance and Healthcare,
as well as expense control

9 / 28

TBCT:

Despite the impact of decreased blood transfusion demand, continued increase in both revenue and profit
thanks to better product mix driven by higher component collection system sales and expense control(100 M JPY)
Q4 YTD

Comments

Q4 YTD
Rev. YoY

Blood center solutions: Driven by component collection system thanks
to increase in collection demand for the COVID-19 convalescentplasma therapy as well as software update. The negative growth inwhole blood collection products impacted by decreased bloodtransfusion demand in EU, Asia and Latin America, etc. Although thedemand for convalescent plasma therapy decreased in Q4 due to
distribution of COVID-19 vaccines, component collection systemshowed continuous double digit growth+30

Therapeutic solutions: The impact from the decreased number ofprocedures remained. Though Q3 growth turned to positive, Q4 growth
was slightly negative due to COVID-19 resurgence-7

Cell therapy technologies: Despite the delay in implementation due to
COVID-19, showed double digit growth in 2H and recovered to theprevious year level in YTD+0Q4() FXN

1,050 1,072 1,095
Revenue

+2%
(+4%)

284

284

285
+0%

157
Adjusted
Operating
ProfitAdj. OP%

151

191
+27%
(+30%)

48

46

47
+0%

FY18 FY19 FY20

FY18 FY19 FY20

15%

17%

©TERUMO CORPORATION

14%

17%

16%

16%

Adj. OP: Product mix in Q4 became normalized due to recovery in bloodtransfusion demand and decline in convalescent plasma therapy demand,
mainly in US where COVID-19 vaccines have been distributed well. Secured
growth in Q4 while selling expenses and R&D expenses were spent as planned.
Large YTD growth thanks to expense control in addition to gross profit
improvement by better product mix

10 / 28

Major Topics in FY20 Q4• Selected as the “Winner Company” in Corporate Governance of the Year 2020 by Japan Association of Corporate Directors
Corporate

Cardiac &Vascular• Established “DX Promotion Department” for accelerating group-wide digital transformation• Signed a definitive agreement to acquire all assets of Health Outcomes Sciences, Inc.
developing and selling a software for clinical decision support “ePRISM”

A physician checking data
analysed by “ePRISM”• Started production of a lower dead-volume syringe for drug injection “FN syringe”
GeneralHospital• Announced a technology integration with Glooko to deliver new diabetes data solutions

Syringe for drug injection“FN syringe”• Completed clinical study in JP of a novel drug-device combination product “G-Lasta” using
automated injection device developed in collaboration with Kyowa Kirin Co., Ltd.

Blood & Cell
Technologies©TERUMO CORPORATION• Started collaboration with CSL Plasma to deliver new plasma collection platform in US
11 / 28

Glooko’s diasend platform

FY21 Guidance
Projected revenue range in conjunction with the level of demand recovery from COVID-19• Highest in the range: Progress in distribution of vaccines and in recovery of healthcare demand from 1H.
Return to growth trajectory in 2H• Lowest in the range: Number of COVID-19 patients in 1H continues to rise and fall as with FY20.
Recovery from 2H with better control of infection(100 M JPY)

FY20
ActualRevenue

FY21
Guidance

YoY%

YoY%
(FXN)

6,138

6,700-6,800

9-11%

8-9%

Operating Profit984

1,070-1,130

9-15%

4-11%

(Operating Profit%)

16.0%

16.0-16.6%

Adjusted Operating Profit

1,159

1,240-1,300

7-12%

3-8%

(Adjusted Operating Profit%)

18.9%

18.5-19.1%

773

820-865

Profit for the Year
Exchange Rate (USD/EUR)©TERUMO CORPORATION

106 JPY/124 JPY

107 JPY/128 JPY

12 / 28

6-12%

FY21 Guidance: Profit Variance Analysis (for 670 B JPY Revenue Scenario)
Sales
increment
and grossmarginProductionleveladjustment

+0.8%

-0.5%
-0.4%

Price

18.9%

Sales increment and gross margin:
Sales recovery in C&V mainly in US, resulting in
product mix improvement

MDR
and IT
investment

Others

-0.2%

-0.4%

Price:
Impact of Chinese VBP started in FY20 2H continues
throughout FY21

0.0%

0.0%

SG&A
increase

+0.4%

R&D
increase

FX

Production level adjustment:
Adjust the operating level of production for C&V,
especially for TIS products to optimize inventory level
throughout FY21
18.5%

16.0%

FY20
FY20
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

16.0%

FY21
FY21
Adjusted Operating
Operating Profit
Profit13 / 28

SG&A increase:
Despite the increase along with ease of movement
restrictions, sales recovery and new product launchsuch as thoracic stent graft, control within the level ofsales increase
Others:Planning to bear expenses as prior investment forplasma collection business, while planned accrual ofrevenue will be from FY22 or later
FX:
Positive impact by EUR, CNY and other currencies inemerging countries

FY21 Guidance by Company (for 670 B JPY Revenue Scenario)
Revenue

Comments

Amount (100 M JPY)

YoY%() FXN

Cardiac &Vascular

FY19

3,506

FY20

3,285

FY21

3,735

©TERUMO CORPORATION

3%
(3%)

Alliance, DM and pain management products
are the major drivers in FY21. Though special
demand for Healthcare products runs its
course, expect recovery in daily use productsin General hospital products andPharmaceutical

5%
(3%)

Mitigate the decline of COVID-19 convalescentplasma therapy demand by recovery of bloodtransfusion demand, sales increase in
Therapeutic solutions and Cell therapy
technologies

1,710

GeneralHospital

Blood & Cell
Technologies

14%
(12%)

Despite the impact from Chinese VBP of TIS
products, expect double digit growth in TIS and
Vascular Graft, and close to 20% growth in
Neurovascular, driven by sales recovery mainly
in US

1,755
1,815

1,072
1,095
1,150
14 / 28

Dividend Proposal
Stably increasing, and aim for the target dividend payout ratio of 30% over the mid
to long term
FY20 annual dividend: 29.0 JPY (increased by 1.0 JPY from the original guidance)Continue to increase FY21 annual dividend up to 30.0 JPY
FY20Results

FY21
Guidance

Profit for the Year (100 M JPY)

773

820-865

EPS (JPY)

102

108-11429.0 JPY

30.0 JPY

Dividend proposal/share
Dividend payout ratio©TERUMO CORPORATIONInterim 14.0
Year-end 15.0

Interim 15.0
Year-end 15.0

28.3%

26.2-27.7%

15 / 28

Reference©TERUMO CORPORATION

16 / 28

FY20 New Product Pipeline
Category
Coronary
Imaging
Oncology

Products
Steerable sheath
PTCA balloon(manufactured by Essen Technology)

Cardiovascular

JP

Launched

China

Launched

IVUS catheter

JP

Launched

Biodegradable drug-eluting microsphere

EU

FY21

Peripheral embolization plug

US

FY21

Flow diverter
Neurovascular

Region Launch

JP, US Launched

Balloon guide catheter

EU

FY21

Carotid stentJP

Launched

Intrasaccular aneurysm
treatment device (WEB)JP

Launched

Oxygenator

JP

Launched

Heart lung machine (re-launch)JP

Launched

Surgical stabilizer©TERUMO CORPORATION

Category

Products

Vasculargraft

Stent graft for abdominal aortic aneurysm

US

Launched

Syringe pumpJP

Launched

Safety IV catheter

JP

FY22

Syringe pump for open TCI

EU,
Asia

Launched

JP

Launched

JP

FY21

JP

Launched

JP

Launched

Generalhospital
products
Pharmaceutical

Strong opioid analgesic(Fentanyl citrate tape for 1 day use)

Continuous glucose monitoring system
DM andconsumer Blood glucose monitoring system
healthcare
Thermometer

Global Launched

17 / 28

Region LaunchFY21 New Product Pipeline
Category
Coronary

Oncology

Neurovascular

Vasculargraft

Products

Category

RegionDrug-eluting stentJP

Biodegradable drug-eluting microsphere

EU

Peripheral embolization coil

JP

Peripheral embolization plug

US

Generalhospital
products

Pharmaceutical

Products

RegionInfusion pump

JP

Small size syringe pump

JP

FN syringe(16mm needle)

JP

Flumazenil I.V. infusion

JP

Sterile connecting device

JP

Flow diverter

EU, US

Balloon guide catheter

EU, US

GelclairJP

Coil assist stent

EU, USContinuous glucose monitoring system

JP

Insulin patch pumpEU

100th anniversary thermometerJP

Non-contact data link thermometerJP

Automated blood processing system

GlobalValue-added services

GlobalStent graft for thoracic aortic aneurysm

US

Surgical hybrid stent graft

US

Stent graft for abdominal aortic aneurysm

JP

DM andconsumerhealthcare

Blood and cell
technologies©TERUMO CORPORATION

18 / 28

Revenue by Segment and Region©TERUMO CORPORATION

19 / 28

Operating Expenses(100 M JPY)
FY19 Q4
YTD

FY20 Q4
YTD

YoY

YoY%

YoY%
(FXN)

FY19 Q4

FY20 Q4

YoY

YoY%

Salaries & Wages

898

928

29

3%

4%

232

240

8

3%

Sales Promotion

197

128

-68

-35%

-34%

51

43

-8

-16%

Logistical Costs
Depreciation &Amortization
Others

139

144

5

4%

4%

35

37

2

6%

189

191

2

1%

2%

50

49

-1

-2%

423

404

-19

-4%

-3%

109

119

10

10%

1,845

1,795

-51

-3%

-2%

477

488

11

2%

-4

-3%

7

1%

SG&A Expenses Total(SG&A Expenses%)

R&D Expenses(R&D Expenses%)

Operating Expenses Total(Operating Expenses Total%)©TERUMO CORPORATION(29.3%)

506(8.0%)

2,351(37.4%)(29.2%)

491(30.1%)

-15

-3%

-2%

(8.0%)

2,286

136(8.6%)-66-3%(37.2%)-2%613(38.6%)

20 / 28(29.5%)

132(8.0%)

620(37.5%)

Quarterly Results(100 M JPY)

Revenue

FY19 Q4(Jan-Mar)

FY20 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)

1,588

1,313

1,520

1,653

1,652

Gross Profit

853 (53.7%)

689 (52.5%)

816 (53.7%)

908 (54.9%)854 (51.7%)

SG&A Expenses

477 (30.1%)

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

488 (29.5%)

R&D Expenses

136 (8.6%)

112 (8.5%)

119 (7.8%)

128 (7.7%)

132 (8.0%)

Other Income
and Expenses

4

5

-1

2

-2

Operating Profit

244 (15.3%)

181 (13.8%)

238 (15.6%)

334 (20.2%)

231 (14.0%)

Adjusted
Operating Profit

266 (16.7%)

217 (16.5%)

296 (19.5%)

372 (22.5%)274 (16.6%)

USD

109 JPY

108 JPY

106 JPY

105 JPY

106 JPY

EUR

120 JPY

119 JPY

124 JPY

125 JPY

128 JPY

Average
Rate©TERUMO CORPORATION

21 / 28

Adjusted Operating Profit: Adjustments(100 M JPY)
FY19 Q4 YTD

FY20 Q4 YTD

1,106

984

244

231

Adjustment 1. Amortization of acquired
intangible assets

157

146

38

38

Adjustment 2. Non-recurring profit or loss

-13

29

-16

5

1,250

1,159

266

274

Operating Profit

Adjusted Operating Profit

FY19 Q4

FY20 Q4<General examples of adjustment items>• Acquisition related cost
• Lawsuit settlement• Impairment loss
• Restructuring loss
• Nonlife insurance income

Main items in
Adjustment 2. Non-recurring profit or loss

FY20 Q4
YTD

FY20 Q4• Loss on disaster

Business reorganizing cost73

• Other one-time profits & losses

Others22

2©TERUMO CORPORATION

22 / 28

CAPEX, Depreciation and R&D Expenses
FY17

FY18

FY19

FY20

(100 M JPY)
FY21
Guidance

CAPEX
Depreciation

436
420

608
440

895
477

772
484

850
530

Amortization of acquired intangible assets
Others

145
276

146
294

157
320

150
334

155
375

CAPEX = C.i.P. record basis

FY20 results (77.2 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 for
vaccine syringes, etc. Control investment considering FY21 performance

FY17

R&D Expenses©TERUMO CORPORATION

FY18

413

477
23 / 28

FY19

506

FY20

491

FY21
Guidance529

Cash Flows (FY20 Q4 YTD)
Operating CF+1,215
231
539

971

Depreciation
andamortization

Incometaxes

Long-termdebt

64
Working
capital

772

CAPEX

1,669

700

500
Debt
repayment&
redemptionof bonds

Dividends

212

Profitbefore tax

Cash at theend of FY19

©TERUMO CORPORATION(100 M JPY)

Investing & Financing CF-876

93
Others

2,008

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

24 / 28

Cash at theend of FY20

Cash Flows (FY20 Q4)(100 M JPY)

Operating CF
+480

136

221

1,698

Cash at theend of FY20 Q3©TERUMO CORPORATION

Depreciation
andamortization

Investing & Financing CF
-170

39

162

Incometaxes

Working
capital

255
86
CAPEX

Others2,008

Profitbefore tax

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

25 / 28

Cash at theend of FY20

FY21 Guidance: Profit Variance Analysis (for 670 B JPY Revenue Scenario)
Grossmargin
50

275

175

G/P incrementby salesincrease
1,159

984

FY20
FY20
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION(100 M JPY)

Productionleveladjustment
50

Price
47
JP
Reimbursment
3

Price:
Impact of Chinese VBP started in FY20 2H continues
throughout FY21

30
135

SG&A
increase

Sales increment and gross margin:
Sales recovery in C&V mainly in US, resulting in
product mix improvement

R&D
increase
15

MDR
and IT
investment

35

Production level adjustment:
Adjust the operating level of production for C&V,
especially for TIS products to optimize inventory level
throughout FY21

FX
25

45
170

Others
1,240

1,070

FY21
FY21
Adjusted Operating
Operating Profit
Profit26 / 28

SG&A increase:
Despite the increase along with ease of movement
restrictions, sales recovery and new product launchsuch as thoracic stent graft, control within the level ofsales increase
Others:Planning to bear expenses as prior investment forplasma collection business, while the revenue will beplanned from FY22 or later
FX:
Positive impact by EUR, CNY and other currencies inemerging countries

Details of FY20 FX Impact (Flow and Stock)
Q4 YTD FX impact -3.5 B JPY: -2.4B JPY(Q3 YTD) plus -1.1 B JPY(Q4)+0.8 B JPY from flow: Positive impact of JPY depreciated against EUR and CNY,
and negative impact of currencies depreciated in emerging countries such as Brazil(JPY)

FY19 Q4 average
120
15.6

EUR
CNY

FY20 Q4 average
128
16.4

Variance81-1.9 B JPY from stock: FX impact on elimination of unrealized profit in inventories• Negative impact due to rapid depreciation of JPY at the end of Mar. FY20
• Negative year-on-year variance increased due to JPY slightly appreciated at the end of Mar. FY19

USD
EUR

(JPY)

(JPY)

FY19 Q4 At the end of
Variance
Mar. FY19
average

FY20 Q4 At the end of
Variance
Mar. FY20
average©TERUMO CORPORATION

108.9
120.1

108.8
119.6

-0
-0

USD
EUR
27 / 28

106
128

111
130

5
2

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

USD

EUR

CNY

Revenue17827

Adjusted Operating Profit

0

5

15

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

Adjusted Operating Profit©TERUMO CORPORATION

-1

10

EMEA

Asia

EUR

OthersCNY

Others

65

13

23

36

28 / 28