Financial Results for the First Quarterof Fiscal Year Ending March 31, 2025 (FY2024)

Aug 8, 2024

Jin Hagimoto

Chief Financial Officer
Terumo Corporation

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. Information about products (including products currently indevelopment) which is included in this material is not intended to constitute anadvertisement or medical advice.

©TERUMO CORPORATION

2Highlights
Revenue
Highest ever result for a quarter
Demand continued across all companies, which together with foreign exchange
contributed to company-wide growth of +19.9%
Operating Profit
Operating income and net income both reached record quarterly highs
Growth outpaced that of sales due to appropriate cost control measures©TERUMO CORPORATION

3

P&L

Revenue: Strong inherent growth in all companies, plus effects of pricing measures and one-time factors
Operating Profit: Improved profit margins due to contributions from increased sales and appropriate cost control
100M JPY

FY23 Q1

FY24 Q1

Change

2,153
1,098

2,582
1,376（%）(51.0%)(53.3%)

651

748

（%）

(30.2%)(29.0%)

154

174（%）(7.2%)(6.7%)

3

Revenue
Gross Profit

20%
25%

Changeexcluding
FX impact

10%
12%

15%

5%

13%

5%-8--

296

446

51%

24%（%）(13.8%)(17.3%)

345

511

48%

24%（%）(16.0%)(19.8%)

298

456（%）(13.8%)(17.7%)

225

339（%）(10.5%)(13.1%)

137JPY/150JPY

156JPY/168JPY

SG&A Expenses
R&D Expenses
Other Income and Expenses

Operating Profit
Adjusted Operating Profit
Profit before Tax
Profit for the Year

Average exchange rate (USD/EUR)©TERUMO CORPORATION

453%
50%

OP Variance Analysis (Q1): Sustained demand contributing to increased sales(100M JPY)

Price+24Gross
SG&A
R&D
margin Reimburincrease increase
sementprice

G/Pincrement
bysalesincrease

G/P increment by sales increase:
Driven by C&V, mainly TIS and Neuro
Gross margin:
Mitigation of inflationary and cost reduction
effects

FXPrice:
Effects of price measures+6SG&A increase:
Increase due to business expansion, in line withplanned figures
FX:
Flow +3.8 B JPY
Stock +2.5 B JPY*

FY23 Q1 FY23 Q1
OP
Adj. OP©TERUMO CORPORATIONFY24 Q1 FY24 Q1
Adj. OPOP

5*Includes a +2.2 B JPY impact from change to exchange rateused for elimination of unrealized gains on inventory.

Change to Exchange Rate Used for Elimination of Unrealized Gains on Inventory
Objective: Taking into account the recent volatilities in exchange rates, to avoid large fluctuations in business results
based on closing rates
Change: Exchange rate used for elimination of unrealized gain on inventory held by overseas subsidiaries
Up to FY23

From FY24

Elimination of unrealized
gains on inventory(Affects PL costs)

Closing rate

Average rateduring stock turnover period

Inventory(BS)

Closing rate

*Based on average inventory turnover period

Closing rate
(No change)

Effect：(100M JPY)

FY24 Q1

Gross profit
Exchange rate（USD）©TERUMO CORPORATION

BeforeRate on the last day of thefiscal year

After
Average rate during theturnover period

Change1,354

1,376＋22

End of FY23: 151
End of FY24Q1: 161

FY24Q1: 156

6

Revenue by Region: Steady progress in all regions, with transient demand also contributing
C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular, HCS: Hospital Care Solutions, LCS: Life Care Solutions, PS: Pharmaceutical Solutions

FY24 Q1 YTDRegional
breakdown

37%

20%

21%
9%
13%

Revenue (100M JPY)

FY24 Q1 YTDYoY change

Comments( ) FX Neutral

30%(15%)All companies posted double-digit growth, even whenexcluding exchange rate effects. Driven by TIS, Neuro,and Vascular in C&V, and the blood center business inTBCT

499
475
528

11%

TMCS grew significantly. Price measures contributed inHCS, PS also progressing as planned

386
444
541

22%(8%)In C&V, double-digit growth in Neuro / Vascular, evenwhen excluding exchange rate effects; in TBCT, strong
performance in the blood centers business and apheresis
therapy

Americas FY22FY23
FY24662740JapanEurope959

China

194
200
230

15%(5%)

Asia andOthers

233
294
323

10%(0%)©TERUMO CORPORATION

7C&V led the way. Neuro showed significant growth as
FY23Q1 experienced lower sales from distributors'
inventory adjustments. TIS exceeded planned figures due
to a rebound from VBP induced order hold-back
The blood center business returned to normal fromFY23Q1 one-time high. C&V and TMCS were driven bycardiology and PS respectively, growing double-digits evenexcluding exchange rate effects

C&V: Both sales and profits exceeded planned figures, driven by Europe and the U.S.
(C&V: Cardiac and Vascular, TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular)

Q1( ) FX Neutral

1,168269

Adjusted
OperatingProfit©TERUMO CORPORATION

TIS

1,306

: US saw double-digit growth, even when excluding
exchange rate effects, driven by the resolution of supply
issues for some access products

Q1
YoY+148

Neuro- : Sustained demand led to growth in all global regions,vasculareven when excluding exchange rate effects. This
accelerated growth was partly due to reduced sales in
FY23Q1+64

Cardio- : Hardware demand has run its course. However, driven
vascularby sales in US+14+3538%(+13%)

Vascular : Led by US and Europe. Strong sales expansion of stent
Graftgrafts and surgical grafts, as well as hybrid products
sales expansion continued

Profit

+20%
(+8%)

280

Profit %Comments
1,567

Revenue（100M JPY）

372

FY22

FY23

FY2424%21%

24%: Increase in sales and the effect of profit improvement
measures, as well as appropriate SG&A control, led toan increase in income

8TMCS:

Revenues and profits increased due to the effects of pricing measures,
including sales increases due to one-time factors(TMCS: Medical Care Solutions)

Q1（100M JPY）

Comments

Q1
YoY( ) FX Neutral

460

518
437

HCS
Hospital CareSolutions: In Japan, revenues increased due to the effect of pricing
measures implemented in the second half of FY23, thereimbursement rate revision this fiscal year, and strong
sales of infusion sets and syringes. Overseas sales werestrong due to a transient increase in demand in USLCSLife CareSolutions: Decreased sales due to termination of the CGM(Continuous Glucose Monitor) distributorship agreement

Revenue+18%(+15%)

65
Adjusted
OperatingProfitProfit %©TERUMO CORPORATIONPS: CDMO business in Japan moved ahead as planned. This
Pharmaceuticalaccelerated growth was partly due to reduced sales inSolutions
FY23Q1. Overseas, PLAJEX in US performed well4528+131%(+145%)

FY22

FY23

FY24

10%6%13%

Profit: Profit increased due to higher sales and the effect of pricingmeasures. Price revisions implemented in the second halfof FY23 are expected to produce effects in the first half of
this fiscal year

9+46-2+37

TBCT: Sales expanded due to strong performance by the blood center business（100M JPY）

(TBCT: Blood and Cell Technologies)

Q1

Comments

Q1
YoY( ) FX NeutralRevenue

Profit %©TERUMO CORPORATION

Blood CenterSolutions:

Strong sales of apheresis collection systems andwhole blood collection-related products in US andEurope. Rika (Source plasma collection system)is also developing well+65+21%(+9%)

TherapeuticSolutions:

Strong sales, mainly in US and Europe, as aresult of increased demand for cell collections
associated with cell and gene therapies+2168

Cell Therapy
Technologies:

Cell processing systems sluggish due toincreased competition+1

Profit:Profit excluding exchange rate effects on par withthat of the same period of the previous fiscal
year. Profit margin maintained at 14%

409

345

59
Adjusted
Operating
Profit497

36 +27%

+16%
(-0%)

(+30%)

FY22

FY23

FY24

10%

14%

14%
10Awareness of the Current Environment
Unstable

No change

Fundamentals

Inflation

Generally soundDemand and growth potential remain favorable

Easing inflation also requires close monitoring(raw materials, transportation, energy, etc.)

Unstable©TERUMO CORPORATION

Accelerating

Exchange rate fluctuations

Group strategy

Future outlook remains uncertain

With the robust implementation of GS26,
Implementing Bold plus-Alpha (portfolio optimization)

11Reference©TERUMO CORPORATION

12P&L (QoQ)(100M JPY)

FY23 Q1

Q2

Q3

Q4

FY24 Q1(Apr-Jun)(Jul-Sep)(Oct-Dec)(Jan-Mar)

Revenue

2,153

2,286

2,391

2,389

2,582

Gross Profit

1,098 (51.0%)

1,185 (51.8%)

1,266 (52.9%)

1,243 (52.0%)

1,376 (53.3%)

SG&A Expenses

651 (30.2%)664 (29.0%)

707 (29.6%)

737 (30.9%)748 (29.0%)

R&D Expenses

154 (7.2%)

164 (7.2%)

173 (7.3%)

199 (8.3%)

174 (6.7%)

39-8

Other Income and Expenses

3125(Apr-Jun)

Operating Profit

296 (13.8%)368 (16.1%)

390 (16.3%)

346 (14.5%)

446 (17.3%)

Adjusted Operating Profit

345 (16.0%)

411 (18.0%)

441 (18.5%)

371 (15.5%)

511 (19.8%)

137JPY
150JPY

145JPY
157JPY

148JPY
159JPY

149JPY
161JPY

156JPY
168JPY

Quarterly
Average Rate©TERUMO CORPORATION

USD
EUR

13SG&A (QoQ)(100M JPY)

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation and Amortization
OthersSG&A Expenses(%)

R&D Expenses(%)

Total(%)

Quarterly Average Rate©TERUMO CORPORATION

USD
EUR

FY23 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)

FY24 Q1(Apr-Jun)

336
49
47
58
161
651
(30.2%)
154(7.2%)
805(37.4%)

349
44
46
61
164
664
(29.0%)
164(7.2%)
828(36.2%)

371
54
49
65
168
707(29.6%)
173(7.3%)
881(36.8%)

373
54
51
66
192
737
(30.9%)
199(8.3%)
937(39.2%)

398
52
51
70
178
748
(29.0%)
174(6.7%)
922(35.7%)

137JPY
150JPY

145JPY
157JPY

14148JPY
159JPY

149JPY
161JPY

156JPY
168JPY

SG&A (YoY)(100M JPY)
FY23 Q1
Salaries & Wages
Sales Promotion
Logistics Costs
Depreciation andAmortization
OthersSG&A Expenses Total（%）

R&D Expenses（%）

SG&A Expenses Total（%）©TERUMO CORPORATIONFY24 Q1

YoY

YoY%

YoY%
excluding FX
impact

336
4947

398
52
5162
3
418%
6%
6%

7%
-2%-2%

5870

1221%

9%

161
651

178
748

1797

10%
15%2%5%(30.2%)(29.0%)

154

174

1413%5%(7.2%)(6.7%)

805922

117

15%5%(37.4%)(35.7%)
15Adjusted Operating Profit: Adjustments(100M JPY)
FY23 Q1

FY24 Q1

345511

Adjustment 1. Amortization of
acquired intangible assets-46-56

Adjustment 2. Non-recurring profit or loss

-2-9296446

Adjusted Operating Profit

Operating Profit<General examples of adjustment items>• Acquisition related cost

• Nonlife insurance income• Lawsuit settlement• Loss on disaster• Impairment loss

• Other one-time profit & losses• Restructuring lossAdjustment 2. Non-recurring profit or loss

FY23 Q1

FY24 Q1Restructuring loss

-2-11Others-2©TERUMO CORPORATION

16

CAPEX, Depreciation and Amortization, R&D Expenses(100M JPY)
FY21

FY22

FY23

FY24Q1FY24Guidance

CAPEX

692

758

784

147

930

Depreciation and Amortization

532

635

702

192

770

Amortization ofacquired intangible assets

161

188

200

56200

Others

371

447

502

136

570

CAPEX = Construction in progress record basis, lease depreciation (IFRS16) is not included in Depreciation

FY2024 Q1 results (14.7 B JPY): Construction of a new building in the Kofu Plant to strengthen production system for CDMO
(contracted development and manufacturing) and others. Other investments include TIS and Blood and Cell Technology production
increases, source plasma collection-related, R&D investments, and continued investment in IT, including core systems (SAP)FY21
R&D Expenses©TERUMO CORPORATION

518

FY22

FY23616691
17

FY24Q1174

FY24
Guidance715

Cash Flows (Q1)
Operating CF+357
210456

182

IncomeDepreciation
taxes, etc.
andamortization

Profit beforetax

Investing & Financing CF-457

127
Workingcapitalgains andlosses

Debt
Repayment*
Issuance of Bonds,
147 188
Proceeds fromCAPEX
borrowings

1,349
2,049

Cash at the endof FY23
©TERUMO CORPORATIONCAPEX = Construction in progress record basis(100M JPY)

163

162

3Dividends

Others156

1,198*After taking into account derivative settlements

Aligned with period-end account balance "Cash and cash equivalents" on B/S

18

1,949

Cash at the endof FY24 Q1

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

USD

EUR

CNY

Revenue

251139Adjusted Operating Profit

1523

USD

EUR

CNY-2.5-0.6-2.0

Impact of 1 JPY depreciation (Stock)
Adjusted Operating Profit©TERUMO CORPORATION

19