Diabetes Management (DM Business)
Strategic Direction

May 12, 2021

Shinjiro Sato
President and CEO
Terumo Corporation

Safe Harbor for 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 beguarantees of future events or performance. Accordingly, it should be noted that actual results may differ fromthose forecasts or projections due to various factors. Factors affecting to actual results include, but are notlimited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, andstate of competition.
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
not intended to constitute an advertisement or medical advice.

Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp©TERUMO CORPORATION

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Disease-oriented approach fighting four major diseases that affect society

Target disease with significant social impact because of the aging of society

Oncology

Diabetes

Ischemicheartdisease

Stroke+Heart
failureFootcare

Overall solutions that cover from prevention to prognosis, not just specificdiagnosis or treatment
Prevention©TERUMO CORPORATION

Diagnosis

Treatment

Prognosis

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Become a Partner in the Patient JourneyDM business: Still small and Japan-focused
A business with annual sales ofapprox. 20 B JPY, in General Hospital

Cardiac &Vascular
53%

DM
11%

Overseas
13%

Japan
87%

GeneralHospital
29%
Blood & Cell
Technologies
18%©TERUMO CORPORATION

Has been focused inthe Japan market

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Leverage rich product lineup to deploy overall solutionsin the new mid- to long-term growth strategy
from FY2022

Next Mid- toLong-term
Growth Strategy

from FY2018

Self Monitoring ofBlood Glucose (SMBG)

90s

Pivot to therapeutictechnology

00s

Collaborativeproducts#1 Japan market
position

Continuous Glucose
Monitoring (CGM)

Development ofunique products
Pen needle©TERUMO CORPORATION

Insulin pump (Pump)

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Evolve DM success factors using digital and AI

DigitalCloud

Previous success factor:AI

New success factor: Solution value

Product capability
 Blood glucose measurement precision
 Continuous, real-time, precision blood glucose＋extensive patient data
 Provide real-time, accurate management toolsmeasurement
 Biocompatibility (needles, cannulae)©TERUMO CORPORATION

 Accumulation and advanced utilization of Improve outcomes and QOL
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DM market: Enormous medical device segment
Patient population: Increasing;
to be over 600 million
630 M
peopleScale of DM in medical device market(Billion USD)

7340

Diabetes

3530

430 M
people25201510520172045Prediction

Reference: IDF Diabetes Atlas 2017, For patients aged 20-79 years©TERUMO CORPORATION

0Artificialvalve(surgery,catheter)EP

CRM Anesthesia Inter- General
Respiratory vention Surgery(Therapeutic)

Reference: Terumo research, 20197 / 13Dialysis

Wound Orthopedic
careSurgeryDM market: 7%+ growth in primary products.
Products have regional characteristics
Asia: SMBG; EU: pump; Global: pen needle; US: CGM
40(Billion USD)

(Billion USD)
35

CAGR 7.4%

30

CGM

25Penneedle

2015Pump

1050SMBG2018©TERUMO CORPORATION

2023GlobalNorthAmericaEuropeAsiaOthers

4.6

3.6

0.8

0.1

0.1

CAGR12.4%

13.0%

10.4%

6.9%

16.9%

4.2

1.4

1.2

1.0

0.5

CAGR10.5%

10.5%

10.5%

10.5%

10.4%

10.0

5.3

3.7

0.9

0.3

CAGR9.1%

5.1%

16.9%

10.4%

5.5%

17.1

5.6

6.2

4.2

1.1

CAGR4.7%

Reference: Frost & Sullivan 20198 / 13

2.5％

4.0％

9.3％

5.1％

World-leading product lineup
through internal R&D and collaboration
Pen needle
Unique technology©TERUMO CORPORATION

CGM

Pump

#1 global technology
and reliability

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Tubeless and precisionadministration, better QOL

Insulin pump: Achieves same precision as tube products
Insulin administration precision comparision(1U=10μL)

Dose（U）

1.5

1.0(JDST Vol. 15, Presented at ATTD conference)

Company A: Pump using tube

Dose（U）

Uses unique high-precisionadministration technology

0.5
1.5

1.0

0.5
1.5
Dose（U）

Company B: Tubeless patch pump

1.00.5Tubeless to improve patient QOL

051015
Number of Bolus

2025

1U bolus administration repeated 25 times©TERUMO CORPORATION

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Global deployment addressing regional characteristics
Outside Japan: Specialized

Japan: Full lineup
Leverage Terumo’s solid hospital base

Add Terumo core technologies to overseas

to provide solutions for every type of patient

firms’ DM solutions in B2B-based expansion
Company Asolution

SMBG

Penneedle

CGM

Pump

Company Bsolution

Digital healthcare

Coretechnologies
Company Csolution
Type I Type II At-risk©TERUMO CORPORATION

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Accelerate personalization with solution offerings
from outside collaboration
Glooko (US)collaboration
Information Management System
for SMBG, pump, etc measurement
data

MICIN (Japan) joint
development

Diabeloop (France) joint
development

Digital Healthcare SupportSystem based on BG, dietary,physical activity, medication, andother information

Automated Insulin Delivery System
calculates appropriate dose and links
CGM with pumpAIPhysician©TERUMO CORPORATION

Patient

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Target sales revenue approaching 50 B JPY in 10 years
Global strategic deployment addressing regional characteristics
Secure collaboration opportunities that leverage unique coretechnologies and customer baseAccelerate development of overall solutions to be a partner in thePatient JourneyOpen to future M&A opportunities

Approx.
20 B JPY

FY2020©TERUMO CORPORATION

FY203013 / 13