I will now explain concerning the Financial Results for the Fiscal Year ended March 31, 2019.

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First, the general overview: During this fiscal year, we successfully resolved the Ashitaka factory
shipping delays to achieve revenue and profit in line with the revised guidance that we issued in
the 1st quarter.
While the revenue growth rate was low, every company grew positively.
Adjusted operating profit was virtually in line with the revised guidance.
Profit was down year on year; however, year‐on‐year negative growth was diminished from the3rd quarter to 4th quarter, and we achieved positive year‐on‐year profit growth when excluding
FX impact.
When excluding the temporary increase that occurred in the previous fiscal year, profit for theYear also increased year on year.
Therefore, we overcame the Ashitaka problems to achieve increased revenue and profit whenexcluding FX impact.

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Next, the FY18 results in comparison to the original guidance.
As you can see, the negative variance was due to Cardiac and Vascular Company. The amountnegative below original guidance was approximately the amount that guidance was later reviseddownward.
In areas other than the Ashitaka Factory shipping delays, drug‐eluting stents also came in below
forecast, but businesses such as neurovascular covered for some of that shortfall.
In General Hospital, revenue and profit both exceeded original guidance largely.
In Blood Management, revenue was above guidance. Operating profit was trending well below
the previous year until the 3rd quarter, but then recovered in the 4th quarter.
When excluding FX impact, its numbers were in line with guidance.

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Next, an explanation of the adjustments that result in the adjusted operating profit figures.
The largest adjustment item was the amortization of acquired intangible assets.
Temporary gains and losses were a relatively small 900 million yen in total. They consisted of thesame items that we explained when announcing the 3rd quarter financial results.

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Next is the adjusted operating profit variance analysis.
Increased revenue and improved gross margin, the two items to the left, grew as business performance
improved in the 3rd and 4th quarters.
Specifically, two main factors with positive impact on gross margin increased greatly in the 4th quarter.
The two main factors were: First, improved product mix by the increase of revenue in the TIS business.
The other was gross margin improvement through increased production volume at the Yamaguchi Factory.
In price, the Japan reimbursement price revision impact was approximately as we anticipated.
Because of reduced sales during the Ashitaka shipping delays, the amount of price erosion impact wassmaller than expected.
Increase of SG&A was as planned.
Increase in R&D was partially affected by the need for engineers to work on resolving the Ashitakashipping delays, resulting in that number coming in slightly smaller than plan.
The euro and emerging market currencies had a negative impact which increased in the 4th quarter, toend with an impact of minus 3.7 billion yen over the fiscal year.
Our guidance for FY19 includes a similar impact, which I will explain in detail later.

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Next, revenue by region.
In Japan, General Hospital and Blood Management covered for negative impacts in Cardiac andVascular to bring year‐on‐year revenue growth to approximately 0%.
Outside Japan, the steady recovery of Cardiac and Vascular helped to overcome FX impacts andresult in an increase in positive growth.
China in particular experienced a large increase as the Essen acquisition began to contributerevenue in the 4th quarter, and as TIS shipments were increased amid recovery from theAshitaka shipping delay.
The Americas saw a slightly lower compared to the 3rd quarter year‐on‐year growth. However,Cardiac and Vascular was steadily recovering, while there was a negative impact from thedecrease in the Blood Management therapeutic apheresis business.

6Next is revenue by business segment.
I will get into more detail when I discuss the companies individually.
The Cardiac and Vascular Company normalized following the shipping delays to show positiveyear‐on‐year growth.
The General Hospital alliance business maintained its strong performance.

In Blood Management, the blood center business expanded steadily to cover the decrease intherapeutic apheresis, for overall revenue growth of approximately 0%.

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In Cardiac and Vascular, the TIS business pivoted to year‐on‐year positive growth in the 4thquarter.
The neurovascular business continued to achieve double‐digit growth.
In adjusted operating profit, the recovery of TIS product sales resulted in a large reduction of theprofit downturn, from the 3rd to the 4th quarter.

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The General Hospital Company alliance business was strong, and other businesses also posted
good sales. Specific products with good sales included infusion lines, pain management, andadhesion barrier.
In profit, strong sales of high‐margin products absorbed the rapid increase in R&D expenses,
resulting in increased profit year on year.

9In Blood Management, the blood center business covered for decreased sales of therapeuticapheresis.
Factors behind blood center business growth varied by region; in Japan, growth of the TACSI
automated blood processing system contributed to the increase.
In the Americas, next version of the automated blood collection system contributed to growth.
In Asia, production increased at the Vietnam factory, leading to sales growth.
Adjusted operating profit was down year on year until catching up in the 4th quarter, for a final
result of positive year‐on‐year growth.
There was a large FX impact on Blood Management adjusted operating profit from the euro andemerging market currencies; when excluding FX impact, the company’s adjusted operating profit
grew 13% year on year.

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As for major topics, please refer to the details listed here.

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I will also skip the FY18 product pipeline.

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I will now explain our FY19 guidance.
Our revenue plan is to see significant growth despite yen appreciation, through TIS recovery.
Our guidance is for 6% year‐on‐year revenue growth; 8% when excluding FX impact.
Adjusted operating profit guidance is lower growth than revenue; I will explain this on the nextslide.

13This is the adjusted operating profit variance analysis.
A strong sales increase and improved gross margin are the two positive arrows on the left.
Negative factors unique to FY19 include: The Japan reimbursement price revision scheduled forthis year, which will have a 3‐billion‐yen impact; the costs of compliance to the new European
Medical Device Regulation, and investment in IT systems, which will result in 4.7 billion yen.
The euro and emerging market currencies are expected to result in a negative FX impact of 5billion yen.
These are the factors expected to negatively impact operating profit.

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Next is our guidance by company.
First, Cardiac and Vascular is expected to overcome the Japan reimbursement price revision andFX impacts to grow steadily.
Excluding FX impact, both revenue and adjusted operating profit are expected to see double‐digit growth.
General Hospital revenue is expected to grow steadily.
However, the operating profit plan is for negative growth. This is due to increased depreciationreflecting expansion of the Yamaguchi Factory, with a year‐on‐year impact of 1.9 billion yen.
Blood Management is the company most affected by FX impact. Excluding that impact, revenue
and adjusted operating profit are both planned to grow 5%, meaning that the company’s basebusiness is growing well.

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Next is the FY19 product pipeline; please refer to the details listed here.

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Lastly, regarding dividends: This fiscal year, we have implemented a stock split, so per‐share
dividend is half of the prior amount; however, I will express the amount based on that of theprevious year for ease in comparison.
Last year’s dividend was 54 yen for the year; this year that is expected to be increased by two
yen to the equivalent of 56 yen.

This concludes my explanation. Thank you.

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