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

May 15, 2023

Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation

Hello. I am the CAFO, Muto. I will explain our earnings results forthe fiscal year ended March 31, 2023.

1

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 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 / 272

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 / 27First, the highlights of this earnings announcement.
The FY22 sales revenue and operating profit results were both
our highest ever. We also secured an increase in profit for theyear.
Sales revenue grew 5% when excluding FX impact, as strong
global demand continued, led by the US market.
At the same time, profit was greatly affected throughout the year
by inflation. Although we achieved an increase in profit, the mostrecent Q4 saw not only inflation impact, but also one-time
downward factors, resulting in a shortfall against the guidance
we announced in February.
Later I will explain these one-time factors from Q4 in more detail.
Regarding the FY23 guidance:
Sales revenue will continue to grow globally, and we anticipate
6% growth (excluding FX) to exceed the growth of the previous
year.
We will achieve improvement of operating profit in both amountand rate, growing profit in a double-digit percentage andimproving profitability through expansion of high-margin products,
even more assertive pricing policies, and cost-reduction
measures centered on manufacturing cost.
Next slide, please.

3

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
Revenue
Gross Profit（%）

SG&A Expenses（%）

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%)

518

616

（%）

(7.4%)(7.5%)

Other Income and Expenses
Operating Profit

-25
1,160

-2
1,173

(16.5%)(14.3%)

1,344

1,380

(19.1%)(16.8%)

R&D Expenses（%）

Adjusted Operating Profit（%）

Profit before Tax（%）

Profit for the Year

1,145

1,161

(16.3%)(14.2%)

888

893

Change excluding
FX impact

17%
13%

5%
2%

20%

7%

19%
1%

-5%

3%

-6%

1%
1%

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

7%

FY21 Q4

FY22 Q4

1,798
905

2,022
990

(50.3%)(49.0%)

528

597(29.4%)(29.5%)

144

160(8.0%)(7.9%)

-18
215

5
238

(12.0%)(11.8%)

273

284(15.2%)(14.1%)

215

240(11.9%)(11.9%)

171

191

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

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

4 / 27

Here are the P&L results.
Sales revenue exceeded 820 billion yen for the full year; ourhighest-ever result. Sales were driven by strong demand in the
cardiovascular field globally, particularly the largest US market.
Operating profit was 117.3 billion yen; also our highest-everresult.
However, inflation and supply chain disruption required us tocontinually take measures throughout the year.
I will later explain how we plan to improve profitability in FY23.
Next slide, please.

4Operating Profit Variance Analysis (Q4 YTD)

(100M JPY)

Gross
margin Pricing
+27
G/P
SG&A
increment
Reimburby
sementsales
price, etc.
increase

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
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

Here is the profit variance analysis for the FY22.
As you can see, we were unable to fully counteract the impact ofinflation on gross profitability through measures like increasing
sales and improving business mix.
Next slide, please.

5

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

8,150

Revenue
Guidance

AOP
％
OP

C&V

C&V

4,752

TMCS

TMCS

1,933

TBCT

One-time profit impacts

TBCT

1,463

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%

-

-

-

Revenue

6

17

-13

3

-55

1

-23

-39

-

-

-

-

-52

-

-

-

-

-

-

-

％

Result％OP

Gap (excld. FX)

AOP
％
OP
％
©TERUMO CORPORATIONTBCTExtension of limited Plasma Innovation (PI)launch period
Higher fix-cost burden due to volume shortfallBack-order elimination, production transfer to
Costa 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
CDMO products



COVID-related inventory adjustment
C&V

Production transfer to Costa Rica
Continued production at original site

6 / 27

Here is our explanation of the causes of our profit shortfall
against the downwardly revised guidance we announced in
February.
That guidance was based on adding our Q4 outlook to our
results through Q3, resulting in a shortfall equal to the gap that
occurred in Q4, as shown in the shortfall amount for the year
shown on the lower left of the slide.
The shortfall was approximately 5 billion yen.
I will explain the causes by company, starting with those that had
the largest impact.
First, in the Blood and Cell Technologies Company: The limited
market launch period of Plasma Innovation was extended
beyond expectations, so production and sales volumes came inless than anticipated, which in turn increased the fixed-costburden. Specifically, an adverse variance of the manufacturing
cost of internally produced product drove gross profit downward
in the form of outsourced product fixed-cost compensation.

6

In existing businesses as well, supply chain disruption led to backorders, which required increased usage of air freight to eliminate.
In relation to the Costa Rica production transfer, there was aperiod in which production at the previous US sites overlappedwith that of Costa Rica, placing downward pressure on
profitability.
Additionally, legal fees were incurred in relation to lawsuits
involving EtO (ethylene oxide gas) emissions from our Colorado,United States facility, where the gas has been widely used toperform sterilization of medical devices.
Our emissions from the facility are far below permitted levels, but
lawsuits were made alleging health effects, and our legal
response is expected continue into FY23.
Next, in the CDMO business of the Medical Care Solutions
Company, the shipment of some products was delayed into thefirst half of FY23.
Also, as the Covid pandemic subsided, we adjusted ourinventories of hand sanitizer and other infection prevention
products, which was another expense increase.
Finally, in Cardiac and Vascular, despite beating the top-line salesgoal, the profit contribution of sales revenue was reduced due todelays that occurred as CV products which were transferred to
Costa Rica needed to be manufactured using heavily manual
processes.
This meant that for a period of time, production was performed
both at the previous sites and in Costa Rica, which reduced
productivity.
Next slide, please.

6

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 Q4 YTD
YoY change

Revenue (100M JPY)
FY22 Q4YTD
Regional
breakdown

Q4YTD

Americas
35%

FY20
FY21
FY22

Q4

1,808
2,204
2,866

Comments( ) FXN

497
592
742
534
511
503

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

Japan

2,018
2,061
2,074

25%

Europe

1,204
1,404
1,600

328
364
414

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

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

20%

China

455
594
719

121
147
153

21%
(7%)

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

Asia and
Others

654
770
943

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

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

9%
11%©TERUMO CORPORATION

172
184
209

7 / 27

Next is revenue by region. Markets outside Japan, especially theUnited States, drove growth.
In the US, businesses including TA and Neurovascular, as wellas blood centers, achieved growth in the double digits, for an
overall result of 9% when excluding FX.
In Japan, demand for some infection prevention products
returned to normal levels, resulting in an unfavorable year-onyear comparison. However, new products from businesses like
Pharmaceutical Solutions and TA contributed to maintaining
cumulative growth.
In the EU, TIS and others drove the increase in sales achievedby all companies.
In China, there was impact in the second half, due to a rise in
Covid cases; however, there was recovery in the latter part of Q4,
for a finish of 7% growth when excluding FX.
In Asia and others, TIS and blood centers were strong, growing
in the double digits when excluding FX.

7

Next slide, please.

7

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

C&V:（100M JPY）
Q4 YTD

Q4

Comments

Q4 YTD
YoY( ) FXN

TIS：

4,806
3,971
Revenue

3,285
21%
(7%)

901

1,027 1,217
18%

744

932

Segment
Profit

1,122
20%
(2%)

184

209

FY20

FY21

FY22

FY20

FY21

FY22

23%

23%

23%

20%

20%

23%

©TERUMO CORPORATION

Neuro： Riding market growth, US and other non-Japan
markets 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 good
trend

286
37%

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

8 / 27

I will now explain the results by company. First, the Cardiac and
Vascular Company.
Sales revenue grew 7% when excluding FX, as each business
was steady globally.
The US in particular was a strong driver for the whole.
Businesses including TIS and Neurovascular saw global
demand recovery, and the further addition of new products
added to large growth.
TA (Vascular graft business) also contributed with new products,
approaching a growth rate of 30%. The stent grafts Relay Pro
and TREO, and the open stent graft Thoraflex Hybrid, all grewwell globally.
In profit, high-margin product sales expanded for a good trend
as planned.
Next slide, please.

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

TMCS:（100M JPY）
Q4 YTD

Q4

Comments

Q4 YTD
YoY( ) FXN

1,917
1,755 1,853

HCS
Hospital Care
Solutions:

Infection prevention returned to normal
in Japan, but anti-adhesion and new
prefilled 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
Pharmaceutical
Solutions: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

Revenue
3%
(0%)

465

466

462
-1%

257

236
148

Segment
Profit-37%(-32%)

53

43

22
-47%

Profit%

FY20

FY21

FY22

FY20

FY21

FY22

15%

13%

8%

11%

9%

5%

©TERUMO CORPORATION

9 / 27“TMCS” is the Terumo Medical Care Solutions Company.
In Hospital Care and Life Care, demand for infection prevention
products and thermometer returned to normal, resulting inoverall flat year-on-year growth.
However, the Pharmaceutical Solutions business grew in the
double digits. New product launches made contributions, while
the CDMO business in Japan performed well, and markets
outside Japan also trended steadily.
In profit, the inflation and yen-depreciation impacts that
continued throughout the year, as well as the shipment timing
shift and inventory adjustment in Q4 that I mentioned earlier,combined for a decrease in profit.
Next slide, please.

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

TBCT:（100M JPY）
Q4 YTD

Q4

Comments

Q4 YTD
YoY( ) FXN

1,476
1,095
Revenue285

304

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

342
12%

208
112

Segment
ProfitProfit%+205

Apheresis:

22%
(8%)

191

Overseas component collection kit andwhole blood automation sales
continued to increase

Blood Centers:

1,206

-46%
(-43%)

47

37

‐18

FY20

FY21

FY22

FY20

FY21

FY22

17%

17%

8%

16%

12%

-5%

©TERUMO CORPORATION

10 / 27

Next is TBCT (Blood and Cell Technologies) Company.
Sales revenue trended positively in existing businesses,
particularly the blood center business.
However, profit declined as negative factors including inflation
impact, delays in the ramp-up of Plasma Innovation, andproduction transfer and other costs combined to exert downward
pressure on profitability.
Next slide, please.

10

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

8,540

4% (6%)

Operating Profit

1,173

1,325

13% (12%)

(%)

14.3%

15.5%

1,380

1,510

Adjusted Operating
Profit(%)

Profit for the Year
Exchange Rate (USD/EUR)

16.8%

17.7%

893

1,010

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%)

125

12%

8%

FY23 by Company(100 M JPY)©TERUMO CORPORATION

RevenueAmountAdjusted Operating Profit
YoY%

AmountYoY%

11 / 27

Here is the FY23 Guidance.
We expect sales revenue to grow 6% excluding FX as global
demand stays strong into FY23 as well. Cardiac and Vascularwill continue to be the primary driver.
Operating profit will grow in the double digits. We will grow thehigh-margin growth drivers of each company, while also
strengthening and accelerating Group-wide measures to achievesolid profitability improvement.
Among the companies, TMCS will return its profitability to double
digits.
Next slide, please.

11

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%

C&V

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

TBCT

17%

16%

3. Global production optimization, efficiency
Total*

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

8%

8%

FY22

FY23

*OP ratio

・・・

GS26

12 / 27

FY22 was a harsh year in regards to achieving the overall goalof 20% or higher operating profitability within GS26. We take thisresult seriously, and will undertake three main profitability
improvement measures:First, improve business mix. By expanding the TIS,
Neurovascular, and TA businesses of the Cardiac and VascularCompany, and the Pharmaceutical Solutions business of TMCS,
we will raise our gross margin.
Second, we will be more assertive in raising prices, in both the
aspect of correcting Japan pricing of low-margin products, aswell in expanding the businesses and regions in which weappropriately pass the burden of inflation on through pricing.
Third, we will be sure to maximize the effects of the Costa Rica
production transfer, the centerpiece of our global production
optimization efforts. In addition, projects are already underway
to realize another level of efficiency at Ashitaka Factory, whichsustains the bread-and-butter of the TIS business.

12Finally, multiple one-time causes increased in Q4 of FY22 to
impact profit; however, those shipment delays and inventory
adjustments, etc., will subside in FY23 as the frequency of using
air freight also decreases, all to the effect of contributing toincreased profit.
The graph on the right shows the adjusted operating profitability
trend by company.
It also shows the pre-adjustment operating profitability for theGroup as a whole.
Our CEO Sato will talk later regarding further policies to improve
profitability in FY23 toward our GS26 goals.
Next slide, please.

12

Profit Variance Analysis (FY23 Guidance)(100 M JPY)
GP increment by sales increase:
Continued growth led by C&V
Gross margin:
Increased high-margin product sales, global
production optimization and efficiency improvement

Price
Gross
marginG/Pincrementby salesincrease

FX
SG&A

R&D

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

Here is the variance analysis for our profit guidance.
Among the measures I explained on the last slide, within thiswaterfall chart, the effect of business mix improvement andglobal production optimization and efficiency efforts is included in“Gross margin,” while the effect of more assertive pricing is
included in “Price.”
Regarding FX impact: We anticipate FX impact to remain flat in
FY23.
Next slide, please.

13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)Dividend payout ratio

50

34%

40

28%
25%

32%

29%

30%

25%

30

40

20
10

27

28

29

34

FY18

FY19

FY20

FY21

40%

44

20%
10%

0

0%
FY22
FY22案

FY23
FY23予想guidance

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

14 / 27

This is the last slide.
Our dividend proposal for the end of FY22 is, as we proposed in
February, 21 yen; this would combine with the interim dividend
for an annual total of 40 yen.
Our FY23 dividend proposal is to increase the amount 4 yen to
44 yen for the fiscal year as a whole.
We aim to achieve our 50% total payout ratio goal, as we
increase dividends in a stable manner annually and continue our
30% dividend payout ratio.
This concludes my explanation of our earnings.
Thank you.

14

Reference©TERUMO CORPORATION

15 / 2715

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

2,022

1,973
1,788

1,729

1,717

1,798
1,652

1,653

1,520

TBCT（Rev.）

1,313

TMCS（Rev.）
C&V（Rev.）
Total（OP）

181

362

304

238

FY20 FY21 FY22Q1

©TERUMO CORPORATION

296

334

255

FY20 FY21 FY22
1

Q2

286

375

231

FY20 FY21 FY221Q317 / 27

215

238

FY20 FY21 FY22
1

Q4

1

P&L (QoQ)(100M JPY)

Revenue

FY21 Q4

FY22 Q1

Q2

Q3

Q4

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

1,798

1,973

2,060

2,147

2,022

Gross 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%)

141 (7.1%)

157 (7.6%)

159 (7.4%)

160 (7.9%)

-37

35

R&D Expenses

144 (8.0%)

Other Income andExpenses-18

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%)-6

5

Quarterly

USD

116JPY

130JPY138JPY

142JPY132JPY

Average
Rate

EUR

130JPY138JPY

139JPY

144JPY

142JPY©TERUMO CORPORATION

18 / 27

18

SG&A (QoQ)(100M JPY)
FY21 Q4(Jan-Mar)Labor
Promotion
Logistics
Depreciation
OthersSG&A total

FY22 Q1(Apr-Jun)

Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)

256
45
41
54
132
528

298
46
44
56
123
566

312
44
47
59
142
605

316
52
49
60
138
615

307
45
44
58
143
597
(29.5%)（%）(29.4%)(28.7%)(29.4%)(28.6%)

R&D

144

141

157

159

160

（%）

(8.0%)(7.1%)(7.6%)(7.4%)(7.9%)

Total

672

706

761

774

757

（%）

(37.3%)(35.8%)(37.0%)(36.0%)(37.4%)

Quarterly

USD

116JPY

130JPY138JPY

142JPY132JPY

Average rate

EUR

130JPY138JPY

139JPY

144JPY

142JPY©TERUMO CORPORATION

19 / 27

19

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

ChangeChangeexcludingvs. FY21FX
Q4 YTD
impact

FY21 Q4

FY22 Q4+/-

Changevs. FY21
Q4

7%
8%
7%

256
45
41

307
45
44

50
-0
3

20%
-0%
8%

15%

8%

54

58

4

8%

18%
20%

8%
7%

132
528

143
597

11
69

9%
13%

(29.4%)(29.5%)

16

11%

86

13%

FY22
Q4 YTD

+/-

1,010
160
157

1,233
187
184

223
27
27

22%
17%
17%

203

234

31

461
1,991

545
2,383

84
392

(28.3%)(29.1%)

518

616(7.4%)(7.5%)

2,509

2,999

(35.7%)(36.6%)

97

19%

7%

144
(8.0%)

490

20%

7%

160
(7.9%)

672

757(37.3%)(37.4%)

20 / 27

20

Adjusted Operating Profit amount(100M JPY)

FY21
Q4 YTD
Operating Profit

FY21
Q4

FY22
Q4

1,160

1,173

215

238

161

188

42

44

Adjustment 1. Amortization of
acquired intangible assets

24

19

16

2

1,344

1,380

273

284

Adjustment 2. Non-recurring profit or loss

Adjusted Operating Profit

FY22
Q4YTD

<General examples of adjustment items>• Acquisition related cost • Impairment loss
• Lawsuit settlement• Nonlife insurance income• Restructuring loss • Loss on disaster

Adjustment 2. Major one-time profits & losses

FY21
Q4 YTD

Restructuring loss
Goodwill amortization related to sale of part ofcell processing businessProfit from sale of nutrition business
Others©TERUMO CORPORATION• Other one-time profits & losses

FY22
Q4 YTD
16

25

-

36

8

-39
-4

21 / 27

21

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

FY20

FY21

FY22

FY23
Guidance(100M JPY)

CAPEX

895

772

692

758

Depreciation
Amortization of
acquired intangible assets
Others

477

484

532

635

675

800

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 in
production 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

FY21

506

491

518

FY22
616

FY23
Guidance

650

22 / 27

22

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

Operating CF+1,175(100M JPY)

277
702

1,161

2,053

Incometaxes, etc.

Depreciation
andamortization

412

Working
capitalgains andlosses758

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

183

Others

1,873

Cash at the endof FY22

23 / 2723

Cash Flows (Q4)
Investing & Financing CF-177

Operating CF
+427
109

181
178

375

Depreciation
andamortization

240(100M JPY)

28

37

Incometaxes, etc.

Working
capitalgains andlosses247
69

OthersCAPEXProfitbefore tax

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

Cash at the endof FY22 Q4

24 / 27

24

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

USD

EUR

CNY

Revenue20

938

Adjusted Operating Profit

1

5

16

<Reference> Impact when JPY depreciation 10%

Adjusted Operating Profit©TERUMO CORPORATION

North
America

Latin
America710EuropeAsia

EUR Zone Others
74

25 / 27

13

China

Others31

36

Operating Profit Variance Analysis (Q4)

(100M JPY)
GP increment from sales revenue:
Increased demand and new product contribution
grew sales
Gross margin:
Unprecedented raw materials price increases
etc. and one-time negative factors

Pricing

Gross +10
margin
G/P
SG&A
increment
Reimburby
sementsales
price, etc.
increase

FX

Price:
Pricing efficiency was same size of Q3

R&D

SG&A, R&D increase:
Expense control while continuing investment fornecessary projects-6

FX:
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

26

Product Pipeline and Major Topics

GS26

Major Product Launch, Approval Status
Field(Segment)

Therapeutic (TIS)

GeneralProduct

Drug-eluting coronary stent

Ultimaster Nagomi

Till FY22

FY23 target

JP launched

EU launch
Hydro Coil, CX
China launch

Nagomi

Therapeutic (TIS)

Peripheral coil system

AZUR Family

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

Stent Graft (TA)Thoracic aorta stent graft

Relay Series

RelayPro US launch
JP indication extended

Sales expansion in US
by 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 / 27

AZUR

RelayProZERO

G6Quantum Flex

28