Financial Results for the Fiscal Year
Ended March 31, 2023 (FY2022)

May 15, 2023

Naoki Muto

Chief Accounting and Financial Officer
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 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 affectingto 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 / 27

Highlights
FY22 Revenue
Highest-ever sales revenue and OP; profit for the period increased
US drove sales revenue growth; +5% group-wide (excluding FX)
Profit temporarily down in Q4; shortfall against Feb. guidance

FY23 guidanceContinued global growth, +6% sales revenue growth (excluding FX)
Expand high-margin products for double-digit OP growth©TERUMO CORPORATION

3 / 27

P&L
Revenue: Highest ever. Strong demand continued in C&V field, especially US
OP: Although highest ever, impact from raw materials price increases and one-time Q4 costs
drove profitability down
100M JPY

FY 21 Q4 YTD FY 22 Q4 YTD Change
7,033
3,693

8,202
4,174（%）(52.5%)(50.9%)

1,991

2,383（%）(28.3%)(29.1%)

518616（%）(7.4%)(7.5%)-25
1,160-2
1,173（%）(16.5%)(14.3%)

1,344

1,380（%）(19.1%)(16.8%)

1,145

1,161（%）(16.3%)(14.2%)

888893

Revenue
Gross Profit
SG&A Expenses
R&D Expenses

Other Income and Expenses
Operating Profit
Adjusted Operating Profit
Profit before Tax
Profit for the Year

17%
13%

Change excluding
FX impact

20%
19%
1%
3%1%1%(12.6%)(10.9%)（%）
Average exchange rate (USD/EUR) 112JPY/131JPY 135JPY/141JPY©TERUMO CORPORATION

5%2%

7%7%-5%-6%

FY21 Q4

FY22 Q4

1,7989052,022990(50.3%)(49.0%)

528

597(29.4%)(29.5%)

144

160(8.0%)(7.9%)

-18
215

5238

(12.0%)(11.8%)

273

284(15.2%)(14.1%)

215

240(11.9%)(11.9%)

171

191

Change(9.5%)(9.5%)
116JPY/130JPY 132JPY/142JPY

4 / 27

12%
9%
13%
11%
11%
4%
12%
12%

Operating Profit Variance Analysis (Q4 YTD)

(100M JPY)

Grossmargin Pricing

G/P
increment
bysalesincrease+27

Reimbursement
price, etc.

GP increment by sales increase:
Increased demand and new product contribution
grew sales
Gross margin:
Unprecedented raw materials price increases
etc. continued
Price:
Price increases that we continued through theperiod insufficient to make up for negative
impact

FX

SG&A
R&D

-28

SG&A, R&D:
Expense control while continuing investment ingrowth fields
FX:
Large positive impact due to yen depreciation

FY21
FY21
Q4 YTD Q4 YTD
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

FY22
FY22
Q4 YTD Q4 YTD
Adjusted Operating
Operating Profit
Profit5 / 27

Guidance (announced in February) Profit Shortfall Causes
差額Group（100M JPY） (為替除く)

C&V

C&V

TMCSTMCS

TBCT

One-time profit impacts

TBCT

Guidance

Revenue

8,150

4,752

1,933

1,463

AOP

1,430

1,115

171

151

17.5%

23.5%

8.8%

10.3%

1,220---

15.0%---Revenue

8,202

4,808

1,921

1,476

AOP

1,380

1,122

148

112

16.8%

23.3%

7.7%

7.6%

1,173---

14.3%

---

6

17-133-55

1-23-39-----52-------％OP％

Result％OP％

Gap (excld. FX)

RevenueAOP％OP％©TERUMO CORPORATIONTBCTExtension of limited Plasma Innovation (PI)launch period
Higher fix-cost burden due to volume shortfallBack-order elimination, production transfer toCosta Rica
Increased air freight, more complex supply chain

EtO sterilization lawsuit (US)

Legal fees (included in FY23 guidance)
TMCS

Product shipment carryover to next period

COVID-related inventory adjustment

CDMO products

C&V

6 / 27

Production transfer to Costa Rica
Continued production at original site

Revenue by Region
C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Interventional Systems, CV: Cardiovascular, TA: Terumo Aortic (Vascular Graft), HCS: Hospital Care Soplutions, PS: Pharmaceutical Solutions

FY22 Q4YTD
Regionalbreakdown

Q4YTD

Americas35%25%20%9%11%

FY22 Q4 YTD
YoY change

Revenue (100M JPY)

FY20
FY21
FY22( ) FXN

Q4

1,808
2,204
2,866

497

Comments592

742

30%
(9%)

All companies continued to grow. TA, Neuro,
blood centers all grew in double digits(excluding FX). TIS also strong

1%
1%

Maintained growth. New products
contributed, with PS and TA among drivers

Japan2,018
2,061
2,074Europe

1,2041,4041,600328364414

14%14%(5%)(5%)

TIS, TA, blood centers, PS grew;
all companies saw growth

China455
594
719

121
147
153

21%(7%)March recovery despite COVID impact. TIS
was driver; it accounts for 60% of sales

Asia andOthers

654
770
943

22%22%(9%)(9%)

TIS, CV, TA, blood centers all grew in double
digits (excluding FX)©TERUMO CORPORATION

534
511
503

172
184
209

7 / 27

Continue growth driven by demand increase and new products.
Profitability remains good trend

C&V:

Q4 YTD

Q4（100M JPY）

Comments

Q4 YTDYoY( ) FXN

TIS：

4,806
Revenue

3,285

3,97121%(7%)

901

1,027 1,217
18%

744

932

Segment
Profit1,12220%(2%)

184

209

286
37%

Profit%

FY20

FY21

FY22

FY20

FY21

FY2223%

23%

23%

20%

20%

23%

©TERUMO CORPORATION

Global demand recovery. In therapeutic, expansionof new PTCA guidewire and peripheral embolization
device products. In Access, closure devices andsheaths expanded sales

Neuro： Riding market growth, US and other non-Japanmarkets were drivers+554+128

CV：

Outside Japan steady with earlier demand recovery.
Japan also showing recovery signs

+71

TA：

YTD growth approached 30%. Stent graft and open
stent graft expanded as planned globally+81

Profit：High-margin product sales expansion led to goodtrend

8 / 27

PS continues high growth.
Rising material and energy cost, temporal issues in Q4 led profit to decreaseTMCS:

Q4 YTD

Q4（100M JPY）

Comments

Q4 YTD
YoY( ) FXN

1,917
1,755 1,853
Revenue

3%(0%)

465

466

462

HCS
Hospital CareSolutions:

Infection prevention returned to normalin Japan, but anti-adhesion and newprefilled syringe products expanded.
Double-digit growth outside Japan

+18

LCS
Life Care
Solutions:Heavier competition in glucose selfmonitoring; demand returned to normal
in thermometers, blood pressure
monitors-20

PS
PharmaceuticalSolutions:Continued double-digit growth. Japan
CDMO, overseas container business,
drug kit products all grew

+66

Profit:Rising raw materials and energy cost;
increased procurement cost due to CNY
appreciation; deliveries delayed to next
period from Q4, inventory adjustment of
infection prevention products all
contributed to profit decrease-1%257236
148

SegmentProfitProfit%-37%(-32%)

534322-47%

FY20

FY21

FY22FY20FY21

FY2215%

13%

8%

11%

9%5%

©TERUMO CORPORATION

9 / 27

Core business, mainly blood center business continued good trend.
Fixed cost for PI increased due to prolonged limited market release

TBCT:

Q4 YTD

Q4（100M JPY）

Comments

Q4 YTD
YoY( ) FXN

Revenue

1,095

1,476

Blood Centers:

Overseas component collection kit andwhole blood automation sales
continued to increase+20522%(8%)

Apheresis:

Sales increase with more plasma
exchange therapy and hematopoietic
stem cell collections+58

Cell Processing:

Steady demand due to sustained
growth in cell therapy+6Profit:

Increased raw materials costs, PI fixedcost burden, and costs related withproduction transfer to Costa Rica
pushing profit downward

1,206

285

304

342
12%

191

208
112

Segment
ProfitProfit%-46%(-43%)

47

37-18

FY20

FY21

FY22

FY20

FY21

FY2217%

17%8%16%

12%-5%©TERUMO CORPORATION

10 / 27

FY23 GuidanceSales revenue: Cardiac and Vascular leads for +6% growth overall (excluding FX)
OP: High-margin product expansion, profitability improvement for double-digit growth( ) FXN

Amount (100 M JPY)

FY22 Actual

FY23 Guidance

YoY%Revenue

8,202

8,5404% (6%)

Operating Profit

1,173

1,325

13% (12%)

(%)

14.3%

15.5%

1,380

1,510

16.8%

17.7%

893

1,010

Adjusted OperatingProfit(%)

Profit for the Year
Exchange Rate (USD/EUR)

135JPY/141JPY

9% (11%)13%130JPY/145JPY( ) FXN

C&V

5,038

5% (7%)

1,205

7%

Adjusted
Operating Profit
％24%

TMCS

2,000

4% (5%)

205

38%

10%TBCT

1,500

2% (4%)

12512%8%

FY23 by Company(100 M JPY)©TERUMO CORPORATION

RevenueAmount

Adjusted Operating Profit
YoY%Amount

11 / 27

YoY%

FY23 Profitability Improvement Policies
FY21 to GS26 Adjusted OP% Trend*
1. Increase high-margin product sales
Keep high growth in TIS, Neuro, TA for 7% C&V growth

CDMO as growth driver in TMCS

26%
23%

23%

24%

2. More assertive pricing
Expand businesses/regions to pass on costsPrice revision of low-margin products in Japan

20%

Maximize benefits of Costa Rica transferAutomation, labor-saving at Ashitaka Factory

Total*
TBCT

17%

16%

3. Global production optimization, efficiency
C&V

16%

15%14%13%

TMCS

10%

Recovery from FY22 one-time costsBack-order elimination (reduce air freight frequency)

PI full launch (reduce fix-cost burden)©TERUMO CORPORATION

FY21
12 / 27

8%8%

FY22

FY23

*OP ratio・・・

GS26

Profit Variance Analysis (FY23 Guidance)(100 M JPY)
GP increment by sales increase:
Continued growth led by C&V
Grossmargin
G/P
incrementby salesincrease

Gross margin:
Increased high-margin product sales, globalproduction optimization and efficiency improvement

Price
SG&A

R&D

FX

Price:
More assertive pricing policies; including pricerevision of low-margin products
SG&A increase:
Continued investment in growth areas
R&D increase:
Continued investment in future growth
FX:
Yen depreciation return to normal anticipated

FY22 FY22
OP Adj. OP©TERUMO CORPORATIONFY23 FY23
Adj. OP OP

13 / 27

Dividend Proposal: Continuous increase per shareholder return policy
Shareholder return policy: Continue stable increase in dividend, aiming for 50% total payout ratio within GS26
Total payout ratio is 90% in FY22 with 50 B JPY of share buyback
Annual dividend (JPY)

5040Dividend payout ratio
34%25%25%

28%

32%

29%30%30402010027

FY1828FY19FY20FY21

FY18 figure accounts for effect of April 2019 stock split (1 share to 2 shares)©TERUMO CORPORATION

44342914 / 27

40%

20%
10%

FY22
FY22案

FY23
FY23予想guidance0%

Reference©TERUMO CORPORATION

15 / 27

Revenue by Segment and Region©TERUMO CORPORATION

16 / 27

Quarterly Trend of Revenue and Operating Profit
Revenue:

Q4 YoY +12%, QoQ -6%

OP

Q4 YoY +11％, QoQ -37％:(100M JPY)

2,147

2,060

1,973

1,788

1,729

1,717

2,022
1,798
1,652

1,653

1,520

TBCT（Rev.）

1,313

TMCS（Rev.）
C&V（Rev.）
Total（OP）

181362304238

FY20 FY21 FY22Q1©TERUMO CORPORATION

296334255

FY20 FY21 FY221Q2286375231

FY20 FY21 FY221Q317 / 27215

238

FY20 FY21 FY221Q41

P&L (QoQ)(100M JPY)

FY21 Q4

FY22 Q1(Apr-Jun)(Jul-Sep)(Oct-Dec)(Jan-Mar)

1,798

1,973

2,0602,147

2,022(Jan-Mar)

Revenue

Q2Q3Q4Gross Profit

905 (50.3%)

1,016 (51.5%)

1,054 (51.1%)

1,114 (51.9%)990 (49.0%)

SG&A Expenses

528 (29.4%)

566 (28.7%)605 (29.4%)

615 (28.6%)

597 (29.5%)

R&D Expenses

144 (8.0%)

141 (7.1%)

157 (7.6%)

159 (7.4%)

160 (7.9%)

Other Income andExpenses-18-3735

Operating Profit

215 (12.0%)304 (15.4%)

255 (12.4%)375 (17.5%)

238 (11.8%)

Adjusted Operating
Profit273 (15.2%)

359 (18.2%)

345 (16.8%)

392 (18.2%)

284 (14.1%)-65

QuarterlyUSD

116JPY

130JPY138JPY

142JPY132JPY

AverageRate

EUR

130JPY138JPY

139JPY

144JPY

142JPY©TERUMO CORPORATION

18 / 27

SG&A (QoQ)(100M JPY)
FY21 Q4(Jan-Mar)

256
45
41
54
132
528

Labor
Promotion
Logistics
Depreciation
OthersSG&A total

FY22 Q1(Apr-Jun)

Q2(Jul-Sep)

298
46
44
56
123566

312
4447
59
142
605

Q3(Oct-Dec)

316
52
49
60
138
615

Q4(Jan-Mar)

307
45
4458
143
597

（%）

(29.4%)(28.7%)(29.4%)(28.6%)(29.5%)（%）(8.0%)(7.1%)(7.6%)(7.4%)(7.9%)（%）(37.3%)(35.8%)(37.0%)(36.0%)(37.4%)

144

R&D

672

Total

141
706

157
761

159
774

160
757

Quarterly

USD

116JPY

130JPY138JPY

142JPY132JPY

Average rate

EUR

130JPY138JPY

139JPY

144JPY

142JPY©TERUMO CORPORATION

19 / 27

SG&A (YoY)(100M JPY)
FY21
Q4 YTDSalaries & Wages
Sales Promotion
Logistical Costs
Depreciation andamortization
OthersSG&A Expenses Total（%）

R&D Expenses（%）

SG&A Expenses Total（%）©TERUMO CORPORATION

FY22
Q4 YTD+/-1,010
160
157

1,233
187
184

223
27
27203

2344611,991545
2,383(28.3%)(29.1%)

518

616(7.4%)(7.5%)

2,509

2,999(35.7%)(36.6%)

ChangeChangeexcludingvs. FY21
FXQ4 YTD
impact

FY21 Q4

FY22 Q4+/-

Changevs. FY21
Q4

22%
17%
17%

7%
8%
7%

256
45
41

307
45
44

50
-0
3

20%
-0%
8%

31

15%

8%

54

58

48%

84
392

18%
20%

8%
7%

132
528

143
597

11
69

9%
13%

(29.4%)(29.5%)

144

160

1611%

(8.0%)(7.9%)

672

757

8613%

(37.3%)(37.4%)

97

490

19%

20%

20 / 277%7%Adjusted Operating Profit amount(100M JPY)

FY21
Q4 YTD

FY22Q4YTD

1,160

Operating Profit
Adjustment 1. Amortization of
acquired intangible assets

1,173

215

FY22Q4238

161

188

4244241916

2

1,344

1,380273284

Adjustment 2. Non-recurring profit or loss

Adjusted Operating Profit

FY21Q4<General examples of adjustment items>• Acquisition related cost • Impairment loss
• Lawsuit settlement• Other one-time profits & losses• Restructuring loss • Loss on disaster

Adjustment 2. Major one-time profits & losses
Restructuring loss
Goodwill amortization related to sale of part ofcell processing businessProfit from sale of nutrition business
Others©TERUMO CORPORATION• Nonlife insurance income

FY21Q4 YTD

21 / 2716

FY22Q4 YTD

25-36

8-39-4

CAPEX, Depreciation and R&D Expenses(100M JPY)
FY19

FY20

FY21

FY22

FY23Guidance(100MJPY)

CAPEX

895

772

692

758

800

Depreciation
Amortization ofacquired intangible assets
Others

477

484

532

635

675

157

146

161

188

175

320

338

371

447

500

CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not included in Depreciation“CAPEX” FY22: Continued investment mainly for TIS, Neurovascular, PS, Blood & Cell Technologies inproduction capacity, PI, R&D as well as IT infrastructure (SAP). Started investment on construction of a newplant building in the premises of the Kofu Factory to strengthen production system for CDMO business etc.
“CAPEX” FY23 guidance: Continue investment for growth, incorporating “CAPEX” FY22 project results

R&D Expenses©TERUMO CORPORATION

FY19

FY20

FY21506491518
22 / 27

FY22616

FY23Guidance650

Cash Flows (Q4 YTD)
Investing & Financing CF-1,355

Operating CF+1,175(100M JPY)

277
702

1,161

2,053

Incometaxes, etc.

Depreciationandamortization

412

Workingcapitalgains andlosses

758

CAPEX

Profitbefore tax

Cash at the endof FY21©TERUMO CORPORATION

501
279
AcquisitionofDividends
treasurysharesCAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

23 / 27183

Others

1,873

Cash at the endof FY22Cash Flows (Q4)
Investing & Financing CF-177

Operating CF+427
109

181
178

375
240

Profitbefore tax(100M JPY)

Depreciation
andamortization

2837

Incometaxes, etc.

Workingcapitalgains andlosses

24769

Others

CAPEX
143

1,873

1,624

Cash at the endof FY22 Q3©TERUMO CORPORATIONCAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

24 / 27

Cash at the endof FY22 Q4

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

USD

EUR

CNY

Revenue

20938

Adjusted Operating Profit

1516<Reference> Impact when JPY depreciation 10%

Adjusted Operating Profit©TERUMO CORPORATIONNorthAmerica

LatinAmerica

710Europe

Asia

EUR Zone Others
7425 / 2713ChinaOthers

3136

Operating Profit Variance Analysis (Q4)

(100M JPY)
GP increment from sales revenue:
Increased demand and new product contribution
grew sales

G/P
increment
bysalesincrease

Grossmargin

Gross margin:
Unprecedented raw materials price increases
etc. and one-time negative factors

Pricing+10

Reimbursement
price, etc.

SG&A

R&D

FX

Price:
Pricing efficiency was same size of Q3
SG&A, R&D increase:
Expense control while continuing investment fornecessary projects-6FX:
Positive impact due to yen depreciation
FY21 Q4 FY21 Q4
Operating Adjusted
Profit Operating
Profit©TERUMO CORPORATION

FY22 Q4 FY22 Q4
Adjusted Operating
Operating Profit
Profit26 / 27

Product Pipeline and Major Topics

GS26

Major Product Launch, Approval Status
Field(Segment)
Therapeutic (TIS)
Therapeutic (TIS)

GeneralProduct

Till FY22

FY23 target

Drug-eluting coronary stent

Ultimaster Nagomi

JP launched

EU launch

AZUR Family

Hydro Coil, Framing CoilCX, Soft3D(JP)Vascular Plug(US)Launched*

Hydro Coil, CX
China launch
Sales expansion in US
by indication extended

Peripheral coil system

Stent Graft (TA)Thoracic aorta stent graft

Relay Series

RelayPro US launch
JP indication extended

Infusion Access (HCS)

I. V. catheter

Surflo ZEROJP launched

Sales expansion

Diabetes (LCS)

Continuous glucose monitor G6

JP
NHI coverage added

Sales expansion

Cell Processing

Cell expansion system

Globally Launched

Sales expansion

Major Topics

Quantum Flex

TIS: Terumo Interventional Systems, TA: Terumo Aortic (Vascular Graft), HCS: Hospital Care Solutions, LCS: Life Care Solutions*Hydro Coil, Framing Coil and CX globally launched excluding China• Revise Performance Evaluation System: ESG & CSV as priority themes in GS26 reflects executive officer’s compensation• Drive DE&I: Newly selected four focus areas to promote a culture of diversity, equity, and inclusion (DE&I) as a Group• R.A.V.I. Registry: The registry confirmed the safety and efficacy of RA at 30 days follow-up in visceral embolization procedures• Terumo Group’s Targets for Greenhouse Gas Reduction Approved by the SBT Initiative as 1.5°C Aligned©TERUMO CORPORATION

27 / 27Nagomi

AZUR

RelayProZERO

G6

Quantum Flex