6
Hiroaki Kasukawa, Ph.D.
Chief Technology OfficerCorporate R&D© Terumo Corporation

Terumo R&D System

CTO
Collaborative effort to achievea successful corporate growth strategy• Innovation forcompanies pipeline• Short- to mid-term

CompanyR&D

Evolution ofcore technologies© Terumo CorporationCorporate
R&D• Innovation for
future healthcare• Long-term

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Contribute to Future of Healthcare with Significant Social Impact

Chronicheartdisease• Diseases that increase with age• Diseases that create large social burdens• Diseases that lead to business
opportunities

Ophthalmology

StrokePulmonology

Regenerativemedicine© Terumo Corporation

Mentaldisorder

Orthopedics

Dec 12, 2016

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Chronic Heart Failure(CHF)© Terumo Corporation

Dec 12, 2016

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CHF Is Not Prevented by Treating Just One Disease• Hypertension

Chronic
heart failure(CHF)• Myocardial infarction• Arrhythmia• Valve disease

Decline inblood flow

Disturbance inwater balance• Cardiac toxicity ofanticancer drugs

Nephropathy

CHF onset probability
increases with age© Terumo Corporation

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Repeated Emergency Hospitalization in CHF
Expenditure doubles withaging of society
CHF-related
expenditure in U.S.

10T JPY

Unpredictable acuteexacerbation
Cardiacfunction
Hospitalization
Hospitalization

5T JPY2015

Hidden costs

Hospitalization• Emergency
hospitalization• Declining operation
rate in ICU

2030

Reference: AHA© Terumo Corporation

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Improvements after Heart Failure and Detection of Acute Worsening
Improve condition fromheart failure

Early detection ofacute worsening

Control heart pressure

Remote monitoring

HeartSheet
Next gen.
regenerative medicine

Cardiorenal syndrome(Improve blood flow)

Cloud and AI

Proactive care© Terumo Corporation

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CardiogenicCerebral
Infarction© Terumo Corporation

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Cardiogenic Cerebral Infarction Tends to Have Severe Outcomes
Expenditure increases withaging of society
US healthexpenditure
for strokes

18T JPY

Severe and repetitive
Recurrence
75%
rate

47%

Hidden costs
47%• Decline in QOLMild

7T JPY• Care burden forfamily members• Economic loss fromrestricted activity

SevereDeath

2015
Reference: AHA2030

CaridoArterio- Lacuner
genicsclerosis Infarction
cerebral Infarction
infarction
Okumura et. al., Jpn J. Electrocardiology 2011;31:292, Hisayama Town Rsearch© Terumo Corporation

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Incidence Prevention and Reduced Damage from Aftereffects
Incident prevention

Clot retrieval

Reduced damage

ClotPreventclotformation

Cerebralartery© Terumo Corporation

Local celladministration(via catheter)

Dec 12, 20169/14

RegenerativeMedicine© Terumo Corporation

Dec 12, 201610/14

Evolution of Regenerative Medicine toward Commercialization
HeartSheet

Commercialization

Expansion to other diseases• Official approval• Expanded indications• Allogenic cells

Candidate diseases• Diabetic nephropathy• Peripheral artery disease• Stroke• High volume production…
i.e., local administration
through renal artery

Cells© Terumo Corporation

Dec 12, 201611/14

TransformingEngineering© Terumo Corporation

Dec 12, 201612/14

Collaborative Effort in On-site Engineering and Open Innovation
On-site Engineering

Open Innovation

From
seeds

Academia
Hospital

Fromneeds

New method forvalue creation

Clusterin Israel

In-house
R&D

Partnercompanies

US west coast
Ecosystem

Incubator© Terumo Corporation

Dec 12, 201613/14

Innovating at the Speed of Life
Accelerate R&D through Active Investment• R&D expense Double digits growth• Engineers

Increase 40% from current (1,200)• Active external investment

Contribute to future of healthcare with significant social impact© Terumo Corporation

Dec 12, 201614/14

© Terumo CorporationDisclaimer
The information that Terumo discloses and 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 offuture events or performance. Accordingly, it should be noted that actual
results may differ from those forecasts on projections due to various factors.
Factors affecting actual results include, but are not limited to, changes in
economic conditions surrounding Terumo, fluctuations of foreign exchange
rates, and state of the competition.
The market share information in this presentation is partly derived from ourown independent research.

© Terumo Corporation