Review on Performance in FY2016 andMid- to Long-term Vision
Terumo Corporation
President and CEO
Shinjiro Sato
May 10, 2017

FY2016: Gear Shifting toward New Growth Strategy
PreviousMid-term

Sales
in BJPY800

FY16

ProfitabilityGear
improvement shifting■ Sales
Operating income(excl. amortization)

Mid- to Long-term
Growth Strategy
Accelerate“Sustainable andProfitable Growth”

Operatingincome
in BJPY
120100

600
80

400

6040200
200

FY05

FY07

FY09

FY11

FY130

FY15 FY16© Terumo Corporation

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Review on Performance in FY2016
 FY2016: Gear shifting toward next growth strategy
 Achieved target of "Roadmap to FY16“ in FY2015, a year ahead of schedule Secured a solid foothold in “Mid- to Long-term Growth Strategy”

 Outcome Sales expansion: M&As improved portfolio mix in Cardiac and Vascular Company
 Profitability improvement: Not only TIS but all companies contribute to profit
 Capital efficiency improvement: Share buyback, etc.

© Terumo Corporation

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Sales Expansion: M&As improved portfolio mix in Cardiac and Vascular CompanyBusinessSegment

Acquisition

Contribution

Strategic Purpose

Neurovascular New Aneurysm
Embolization Device(Jun)

Mid- toLong-term

 Introduce new technology as afirst mover to U.S.
 Gain new technology resourcesTIS(Dec)

Vascular Closure
DevicesImmediate Become a top player in accessdevices market
 Acquire products w/ top sharesin steadily growing market

Vascular(Jan)Stent Graftfor TAA and AAA

Mid- toLong-term Acquire stent graft for TAA
 Gain access to U.S. stent graftmarket© Terumo Corporation

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Profitability Improvement: Not Only TIS But All Companies Contribute to Profit
 Cardiac and Vascular: CV and Vascular are now back to growth trajectory CV: All shipping restrictions are lifted by FDA, and its related cost is largely reduced
 Vascular: Improve product portfolio mix and further promote production transfer tofactory in Vietnam
 General Hospital: Steady improvement in profitability
 Downsized low profitable business accounts:EU, North America

 Reinforcing highly profitable business:B2B for pharmaceutical companies

 Blood Management: Overcome price decline in U.S.
 Stabilized pricing in long-term contract, production transfer to new factory in Vietnam
 Continuous expansion in developing countries business as well as apheresis system© Terumo Corporation

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Capital Efficiency Improvement
Sale of Policy Shareholdings
Sale of Olympus stocks (continue business alliance)
The policy shareholding stocks are now less than 1% among theentire asset

Implemented Share Buybacks
Share buybacks of 44.2 BJPY at Olympus’s sale of Terumo stocks

Optimal financing for growth investment
Timely financing while making full use of minus interest rate

© Terumo Corporation

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Mid- to Long-term Vision Trusted in medical settings as a Top Brand
 World-class overall Quality(products, supply, services)

Global Corporation with Unique Excellence© Terumo Corporation

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Points to Achieve Mid- to Long-term Vision

Strengthen Global Operations

Accelerate Strategic Development
Leverage Group’s Comprehensive Strength© Terumo Corporation

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Strengthen Global Operation: Production System
US: Advanced Tech
& New Idea

Japan: Advanced Tech & New Idea

Europe: Advanced Tech

Terumo Europe

Vascutek

Fujinomiya

Ashitaka
Yamaguchi

Terumo Medical
Clinical Supply

Kofu

TCVS

Asia: Low cost mass production
Terumo BCT

MicroVention

Latin A: Low cost

MicroVention

TIS : Closure Device

Terumo Vietnam

Terumo Phillipines

Terumo BCT Vietnam

Terumo Penpol (India)© Terumo Corporation

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Accelerate Strategic Development
From pipeline development to creation of innovation for the growthover the next ten years

CompanyR&D

Corporate
R&D Develop new businesses
and technologies tocontribute to growth overthe next ten years
 Promote innovationoriented project

CTOHQs Enhance productpipelines for businesscompanies Control overall R&D and create synergy

 Upgrade the existingproducts to maximize
business opportunities

 Align among in-house R&D, M&As, andventure investment© Terumo Corporation

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Leverage Group’s Comprehensive Strength
Globalize corporate
function andreinforce corporate
governance
Create synergy andpromote collabo-Enhance global

ration among eachHR strategy

business and region
Enroot Corporate
Mission and Vision
throughout
the group© Terumo Corporation

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IR Contact
Terumo Corporation
Corporate 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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