Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision
05 |Corporate

Fumihisa Hirose,General Manager, Strategic Planning Dept.
and CTO©TERUMO CORPORATION

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Safe Harbor for Forward-Looking Statements and Use of Document
Among the information that Terumo discloses, the forward-looking statements including financial projections arebased 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 thoseforecasts 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 / 17Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision

GS26 FY22~26

Strengthen existing businesses andfirmly invest in the futureCompanyCorporate©TERUMO CORPORATION

FY27~31

Strengthen corporate foundationand generate solid profit from highgrowth businesses

FY32~

Lead paradigm shift in medicalcare and make a leap towarda “New Terumo”

Strengthen existingbusinesses
Establish and accelerate high-growth businesses
Explore new business opportunities (innovation)
Strengthen corporate foundation (innovation, human resources, profitability
improvement, production, ESG/CSV)
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Vision for the Next 10 Years

From Devices
ToSolutions

Focus in solutions: The 3Ds

01

DeliveryHigh value-added biologicalaccess and delivery for advanced
medical care

©TERUMO CORPORATION

0203

DigitalDisease-based approach
focused on improving long-term
patient QOL (Patient Journey)

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Deviceuticals

TM

Maximize drug effectiveness throughinnovative devices

01

DeliveryHigh value-added biological accessand delivery for advanced medicalcare

Pursue vasculardelivery

Pioneer new treatment routes
including nonvascular routes

Deliver treatment to areas andcases that were previously
difficult to reachDevelop new treatments through completely
different routes

Penetration rate ofminimally invasive therapy

60% or less• The penetration rate of minimallyinvasive medicine is still low except
for a few diseases• Aspiring for a world with 100%minimally invasive therapy

Treat with accuracy andprecision

Source: JAMA Surg. 2015;150(2):169-172, etc.
©TERUMO CORPORATION

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Use technology to pinpoint lesions fortreatment

02Digital

Disease-based approach focused on
improving long-term patient QOL(Patient Journey)

Connect before andafter surgery to provide
optimal treatment

Connect inside and outside
the hospital to prevent serious
diseasesConnect advanced medical data torecommend treatments that suit thepatient's condition

Connect the acute and chronic phases to detect
recurrence and onset of disease and prevent
serious illness

Adherence of chronic disease
treatment

30~60%• Treatment adherence rates are low forchronic diseases such as heart failureand diabetes

Connect the entire hospitalto support transformationand streamlining• Utilizing digital to get closer to 100%
adherence rate
Source: Patient Prefer Adherence.
2016; 10: 1299–1307, etc.
©TERUMO CORPORATION

Optimize hospital operations byconnecting data from wards and otherareas
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03

DeviTMceuticalsDrug & Device combination for optimal dosing
Manage dosage and timing with data obtained from patients

Maximize drug effectiveness throughinnovative devices
Ratio of combination products(pharmaceutical + device)

30% or less

Achieve efficacy throughdrug delivery• Accelerate the evolution of combination
products through innovation in delivery

technology and aspire to a ratio of 50%or more

Eliminate bottlenecks in achieving efficacy
of devices and formulations

Source: Ther Innov Regul Sci. 2021 Jul;55(4):807-817, etc.
©TERUMO CORPORATION

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Innovation Will Drive Future Growth
FY22~26 (GS26)
0102

Digital03

DeviTMceuticals©TERUMO CORPORATION

Strengths of companies

Delivery

FY27~

Hybridstent graft

Intradermal
administration
deviceVenous Solution

Robotic
surgicalsupport

Delivery toepicardium
and brain

Digital therapy
supportsystemCell-related datacollection andconsultation

Clinical Decisionmaking support
deviceIn-homemonitoring &detection

Hospital
consultation

Continuouslycontrolledadministration

Ecosystem forsource plasma
business

Drug Delivery to
Difficult-to-Deliver
Sites

Optimal Dosing
SystemInnovative equipment
for high quality
manufacturing

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Drive Projects through Technology CoE and Differentiation
through Technological Capabilities
Technology CoE（Center of Excellence）

Focus Areasof Innovation
01

Mechanical
Design /Processing
Technology

Delivery02

Heart Failure PJ

03

DeviTMceuticals©TERUMO CORPORATION

BioSensing

Digital

Evaluation

Cardiovascular related PJ‐A
Cardiovascular related PJ‐BDigital

Material
Pharmaceutical/Regenerative
Medicine

Cancer PJ

Diabetes related PJ
Cancer supportive care PJ
Localized Cancer PJIntracerebral administration PJ
Blood Caner PJ

Note: The contents and assignments of projects are only for illustration purposes.

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Terumo Aims toward Digital Transformation in Healthcare
Support treatment decision making

Personalize minimally invasive therapies based on patient data

Digitalize disease management

Provide data management, drug delivery systems and digital therapies to the wide rangeof diseases that Terumo addresses

Solutions to connect care from treatment through prognosis

Cover wide range of patient journey with comprehensive Terumo capabilities, and values
including early recovery, remote monitoring, prevention of severity and complications, etc.

©TERUMO CORPORATION

10 / 17Creating New Medical Value by Combining
Terumo Strengths with Advanced Technologies
Partners
AI-based image and predictive analytics

Broad business domain and customer contact

Remote monitoring with wearable devices

Medical device manufacturing technologies
and capabilities

Robust cloud infrastructure and applications

Regulatory compliance and reliability
assurance system

Data interoperability between differentsystems

Service capabilities including training

Health tech, robotics, mobility, etc.

Precision processing, materials, and sensing
technologies©TERUMO CORPORATION

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Maximize the Potential of Human Resources
Achieve Transformation

Realize Global Management

Acquire new skills ofstrategic importance

Develop global leaders andhuman resources

XX

2.5

10Acquire digital human resource(5-Year target)

Human capital pool of global leaders

Growth Mindset(Take on new challenges, grow)

Diversify human resources(DE&I)

33

initiatives

initiatives

Measures to take root in the organization©TERUMO CORPORATION

Realize inclusive workplace environment
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Achieve 2% pts Profitability Improvement through Group-wide“Value Creation through Collaboration (VC2)” ProgramGroup-wide profit
improvement(SG&A)
Group-wide profit+1.0%
improvement(Production)

Effect of non-recurring
expenses (EU-MDR, etc.)
Business and productmix improvement

20~%

+1.0%

+0.7%

+1.0%

-0.7%

17.5%

Strengthen investment in R&D
Proactively address environmental issues

FY26

FY21

Assumption:‒ 1 USD = 107 JPY、1 EUR = 128 JPY©TERUMO CORPORATION

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Optimize Global Production
Strengthen global production
network-Promote production innovation

Strategically leverage low-cost production locations for
efficient and stable supply to major markets
Site selection criteria that includes addressing inflationof transportation costs and reduction of CO2 emissions-Drive automation, lean production, and digitalization-

Leverage the core competencies of quality and efficientoffshore production methods established in concert by
our Japan and APAC factories-Leverage wealth of expertise across the group, andstrengthen redundancies to ensure business continuity

Mother plant production sites

Japan

Strategic production sites in North America

Costa Rica

Strategic production sites in APAC

Vietnam©TERUMO CORPORATION14 / 17

Achieve Group-wide Optimization through 4 Focus Areas
Global teamProductionRegion

 Production
network
optimization
 Drive production
innovation
 …

Procurement

 Optimum
sourcing acrossbusiness unit Strengthen global
sourcing function
 …

Logistics

 Enhance S&OP
to right-size
inventory levels
and reduce writeoffs
 Optimize logistics
and distribution
network
 …

 2% pts profit
improvement
Supportfunctions Standardize andconsolidate
routine processes
within support
functions acrossthe group Establish Centerof-Expertise
 …

Maximize global IT infrastructure©TERUMO CORPORATION15 / 17

 Group-wide
optimization
 Targeting highimpact functions
 Maximize investment
in IT infrastructure Long-term journeywith near-term gains

ESGESet in accordance with SASB, etc.

SCarbon neutrality
Critical market shortages

Number of critical findings

0 casesfrom the regulatory authorities©TERUMO CORPORATION

Water consumption (compared to FY18)
Recycle rateReduction rate 20% | FY30
90% | FY30

Ensuring the quality, safety and stable supply of products
and services

Zero

Number of critical findings from regulatory authorities

FY40

0 cases

Reduce 50% | FY30
Reduce 100% | FY40
Usage rate 50% | FY30

Effective use of resources

FY30% reduction

CO2 emissions (compared to FY18)
Renewable Energy Use

CO2 emissions (vs. FY18, scope 1/2)

50Achieving carbon neutrality

Sustainable supply chain management
No critical market shortages across the Group
Promoting the acquisition of consent on supplier guidelines

Zero
Zero*

Promoting safety measures for the working environment
Number of serious work-related accidents

Zero

Improving the associate experience
Investment in education per associate-Cultivating an organization that leverages diverse humanresources to create value

GRatio of nationalities in executives as well as global key positions
Increase the ratio of female managers

10% | FY26

Effectiveness of the Board of Directors
Evaluation of the effectiveness of the Board of Directors

Conducted annually

Promotion of compliance
Number of internal report
Rate of participation in Terumo Code of Conduct training (annually)

16 / 17100%＊# of supplier dealing without consent on Terumo Supplier Guideline or equivalent policy.

CSV
Promote medical technologies and services and improve access to healthcare■ Further adoption of the radial procedure

Ratio of Radial procedure (FY26) TRI ≥70%, R2P ≥20%, RAVI ≥20%, Neuro10%■ Provide solutions to problems in medical settings

Medical safety・streamlining hospital management (number of facilitiesimplemented)■ Bring life-saving technology to previously unreachable

Introducing technologies to additional geographies■ Provide new treatment options through innovation

Streamlining hospital management (number of facilities implemented)
Expanding treatment options - insurance coverage to bring innovations topatients (number of additional geographies and treatment options)patients

Providing healthcare that is closely aligned with each individual■ Promotion of personalized therapy

Number of stentgraft・radioactive embolization microspheres・HeartSheet・WEB implant cases■ Patient-centered, care continuum focused value

Cancer・Women's Health (number of facilities)

proposition

Co-creating a sustainable healthcare system■ Training

TIS: Number of training■ Using DX to improve and transform the quality of

Build data-driven solutions (number of projects implemented: projects =number of patients + number of facilities)■ Bringing efficiency to the infrastructure of healthcare

Innovations in blood component processing - automated blood processing
systemhealthcaredelivery©TERUMO CORPORATION

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