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 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 toconstitute an advertisement or medical advice.

Terumo Corporation
August 14, 2023

Q&A Session at the Financial Results Briefing for the First Quarter of FY23
Outlined below are the Q&As from the financial results briefing on August 9, 2023.

Hidemaru Yamaguchi: This is Hidemaru Yamaguchi from Citigroup Global Markets.
Thank you. In the blood system section, there was no mention of plasma collection for
CSL Plasma. Could you tell us what is going on, including the number, and what is the
progress against the full-year forecast?
Kenichi Hata, IR Terumo: Thank you for your question. In terms of the progress fromwhat I mentioned at the previous presentation for the full-year results in May, the big
thing was that we have finished enrolling the findings of this algorithm, called nomogram,for taking as much plasma as possible.
That was the big progress, but we are still in the stage of limited market release, or LMR,
as we call it. There has been no remarkable change, including the planned transition to
full deployment, or the full-scale market launch, during H2.
Incidentally, we mentioned eight centers until the previous briefing, but I will tell you now
the number is increasing, and it will be a bit larger number. That’s all.
Yamaguchi: I see. The business will begin to move in H2, won’t it?
Hata: That’s right. Yes.
Yamaguchi: I think the by when date had changed from the medium-term management
plan to the previous presentation, but that hasn't changed either, has that?
Hata: That hasn't changed so far either. No.
Yamaguchi: I see. Also, there was the Q1 progress of the JPY12 billion in the pricepolicy, and I think it is correct to say that it is gradually accumulating, but looking at justQ1, the progress against the full-year plan was not necessarily high, so I think that is one
point.

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 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 toconstitute an advertisement or medical advice.

Regarding this price policy, please follow up by saying that if you continue this progressin Q1, you should be able to achieve this JPY12 billion for the full year, and also whichbusiness areas will contribute significantly.
Hata: It's about slide eight. It is represented in this left-hand pie chart. The profit
improvement measures on the right have a similar shape. Looking at H1 and H2, theoriginal assumption was that more than 60% of the total effects will emerge in H2.
Of the overall price increase of JPY12 billion, more than half, less than 60%, will comefrom MCS, or Medical Care Solutions, and since we will be raising prices significantly forthe second round starting in Q3, H2 will have a greater contribution to the overall increase.
So, looking at Q1 alone, unexpectedly, Cardiac and Vascular and MCS were producing
about the same effect of the price increase. We did not expect a large effect from BCT
since it had a lot of long-term contracts, but in the current year, we are going to raise
prices in large numbers, and now the three companies were showing rather even effects.
However, in H2, the price increases in MCS will be much higher, so we believe that weare making good progress toward the full-year goal of PY12 billion.
Yamaguchi: Thank you. That is all from me.
Moderator: Next, Ms. Yoshihara from UBS Securities, please ask your question.
Tomoko Yoshihara: I am Tomoko Yoshihara from UBS Securities. Thank you. My firstquestion is about operating profit in Q1. You said it generally came in line with yourexpectation, but I think there was a slight tailwind from the exchange rates, so let me first
ask how it was when viewed on a local currency basis.
Hata: In terms of operating profit, the exchange rates were actually effective in increasing
revenue and profit in terms of flows, but when you look at it in terms of margins, it worked
negatively to decrease the margins a little bit. It was because sales had greater exposure.
However, since the Japanese yen weakened in late June this year, the elimination offoreign exchange stocks, so-called inventories, that of internal profits from inventories
had a significant negative effect, totaling JPY3.5 billion. Simply looking at the progressof operating profit against the full-year forecast, it was 22% to 23%. If we add back thenegative impact of the JPY3.5 billion in foreign exchange stocks, the progress will
become about 25%. Looking at the H1 and H2 trends, H2 always shows greater

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 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 toconstitute an advertisement or medical advice.

contributions in terms of both the top line and profits. If you take this into account, we arepleased to say that our progress in the top line and profits were on track for Q1.
Yoshihara: I understand. So, do you have any qualitative upswing by segment, such as
C&V?
Hata: C&V was doing well. Looking at the progress against the full-year plan for thisfiscal year, we were roughly a quarter of the way through. On the other hand, the bloodbusiness has made progress to almost half of the full year's profit, but there were somegood one-time factors, so the 14% margin in Q1 for the blood business will unfortunately
not continue at this level. I think it will settle down at around 10% from Q2 onward.
On the other hand, this MCS seems a bit weak in terms of progress for the year and interms of profit as well as the top line. As I mentioned earlier, we are planning to raise
prices significantly in H2, and among the product mix, the CDMO business, which is thegrowth driver, will show far larger shipments in H2 than in H1. As we enter H2, the mix
will improve and price increases will also proceed, so we intend to manage to catch up
with the forecast by the end of the fiscal year.
But now, looking at just Q1, MCS looked a little slow on progress.
Yoshihara: I see. Thank you. Second, I would like to ask about SG&A expenses. It would
be helpful if you could tell us how SG&A expenses in Q1 were like against the internalplan, on a basis excluding the foreign exchange effects. Then, looking at the detailed
data, it seems that personnel costs and other areas have increased, so please give us abreakdown of that.
Also, when I also consider the financial results of other companies, I think that in manycases, SG&A expenses were relatively high due to the influence of the foreign exchange
rates. For example, I have the impression that competition with European and US
companies is intensifying to a certain extent, due to the endemic. As a result, I would liketo confirm if there was a situation where you needed to invest a considerable amount of
SG&A expenses in order to increase sales.
Hata: Thank you for your question. As for SG&A expenses, looking at the waterfall charton page six, which removed the exchange rate effects to the right side, so you can see
the expenses on a local currency basis.
Certainly, the increase in SG&A expenses had a negative impact of JPY5.9 billion.
Compared with the full-year amount of JPY17 billion, it looks high since the progress was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 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 toconstitute an advertisement or medical advice.

about 35%. However, if you look at it on a YoY basis, the expenses were lower in Q1 ofthe previous fiscal year. Compared to the average of Q2, Q3, and Q4, the level of theexpenses was about JPY4 billion lower in Q1 of the previous year, so when viewed inthat comparison, the progress appeared to be high. However, on a fiscal year basis, wewere in line with the expectations, so I do not think we will make a breakthrough for thefull year.
However, as you pointed out, we have been spending a lot of money on labor costs, andwe are now expanding applications in the TA, or Vascular Graft segment which is thedriver of growth. We are now putting our resources into sales there. I hope I answered
your question.
Yoshihara: Thank you very much. Wasn't there any particular competition, and didn't
you have to spend more on sales promotion than before, for example, you couldn't
expand sales from the era before COVID-19 without any special promotion?
Hata: No. Basically, both the neuro and TA have an element of differentiation in the
products themselves, so I don't think there is a contest of selling power.
Yoshihara: I see. Thank you.
Naoki Muto, CAFO Terumo: Ms. Yoshihara, you asked about internal control. In Q1,
we made control within the scope of the internal plan.
Yoshihara: I see. If this is the case, and if I compare the Q1 results alone, is it correct
to understand that it seemed to be slightly more than in Q1.
Muto: That's right. Yes.
Yoshihara: I understand. Thank you.
Moderator: Next, Mr. Hayashi from Morgan Stanley MUFJ Securities, please go ahead.
Ryotaro Hayashi: I’m Ryotaro Hayashi from Morgan Stanley MUFG Securities. Thankyou. The first question is about the breakdown of the various items included in the planfor this fiscal year on page seven of the document. I believe you are projecting a negative
effect of JPY2.5 billion due to inflation.
As I recall, it is quite complicated. In the case of Cardiac and Vascular, there is a positive
impact on profits due to the convergence of inflation, and in the case of TMCS, thenegative impact may be greater than JPY2.5 billion due to the rising electricity costs in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 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 toconstitute an advertisement or medical advice.

Japan. I would like to know what the impact of inflation in Q1 was against your originalplan for the full year, if there is any amount. What was the progress in Q1 when you
break it down between the impact of the cost increase in the Cardiac and VascularCompany's profit and the impact of the power cost increase in the Terumo Medical Care
Solutions Company?
Hata: This is also the case. It is complicated, but if we look at Q1 alone, we can see thatthe overall performance was flat compared to the previous most recent quarter of Q4 atthe end of the previous year. However, we are now seeing signs that freight fares andelectricity prices are easing, so I expect things to improve in Q2 and H2.
So, we are assuming a negative effect of JPY2.5 billion from the surge in electricity prices,
but we do not believe that it will become worse than this assumption. However, I guess
we will have to wait and see a little longer.
The gross amounts of each company remain flat, so we have not yet reached the point
where we can say whether it is advantageous or disadvantageous to each company.
Hayashi: Okay, thank you very much. The second question is about TBCT, blood.
Excluding the foreign exchange effects, sales increased 14% YoY. However, since youoften mentioned temporary revenue related to winning tenders, is it correct to interpret
the Q2 result as not being a 14% increase, or not being particularly above the full-year
guidance?
Hata: That's right. Compared to the year-before result, yes. It went up 4 percentage
points, and in the most recent quarter, it improved by almost 20 percentage points.
However, as I mentioned earlier, there were successful tenders on the top line, which
will not continue at the same pace in the future, and there was also a positive effect on
the cost of sales due to the revaluation of inventory, which was unique to the beginningof the year. As I mentioned earlier, I expect profits to remain around up 10% in the future.
The progress of the top line was about 27% against the full-year plan. To some extent,
this level may continue, and the progress in Q1 was still strong in terms of both, at about
25%. I hope you can see that both the top line and profit were strong.
Hayashi: I'm sorry, my question may have been a bit complicated, but the top-line sales
growth rate was 14% YoY excluding the foreign exchange effects. Should we consider
that the growth rate of this level will not continue in Q2 or H2? Or is there any clear
reason why we should see it won't continue?

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 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 toconstitute an advertisement or medical advice.

Hata: Yes. This double-digit growth will not last. I think 14% is quite strong. This was
because it included the tender effects.
Hayashi: Were those tenders limited to Q1 alone?
Hata: We can't read too far ahead, so we're looking at it conservatively now, although
we think it will stay at this level if we can get the same successful results. I still think it
will settle at around 10%.
Hayashi: I understand. That is all from me. Thank you.
Moderator: Next, Mr. Tokumoto from SMBC Nikko Securities.
Shinnosuke Tokumoto: This is Shinnosuke Tokumoto from Nikko Securities. Thankyou. The first of my questions is to ask about the outlook for Q2 and beyond for C&V,
Cardiac and Vascular. I understand that the progress was in line with the plan, but while
overseas companies are slightly raising their forecasts, especially for therapeutic devices,
I have a feeling that your North American figures are quite good for Cardiac and Vascular
products.
I would first like to confirm whether your Company itself feels that the market has been
growing and recovering, and that growth of Cardiac and Vascular was able to surpass
that.
Hata: If you look at Cardiac and Vascular overall, revenue grew 7% YoY excluding theforeign exchange rate effects. About 8% QoQ on a constant currency basis in the caseof TIS. However, Neurovascular was a little weak. This was particularly weak in China.
The result was negative. In expectation that there will be VBP, volume-based
procurement, and declines in prices in this area, distributors were reluctant to buy the
products in the market.
However, this may be just as was the case with TIS in China. If you look at TIS in China
in the previous year, Q1 showed the highest sales, and then there were steady declines
in Q2, Q3, and Q4. After the wait-and-see stance in anticipation in VBP, people seemed
to believe that the reluctance to buy was over, and they started to buy again, and as you
can see in this Q1, revenue in TIS in China grew significantly in response.
So I think that if something similar happens, this wait-and-see stance, restrainedpurchases, in Neurovascular in China will be over and buying will come back. Thus one

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 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 toconstitute an advertisement or medical advice.

of the factors that will make the performance stronger than it is now is VBP in
Neurovascular in China.
Also Neuro, we have very well-performing products for treatment of brain aneurysm
called WEB, or Woven EndoBridge, and FRED, which have shown double-digit growthin North America. We also have a very strong product to treat cerebral thrombosis andstrokes called SOFIA, but some components of it fell short and we had a small backlogof orders as we couldn't ship them even though we would have normally been able tofulfill them.
Once this is resolved, the product will grow more as we enter H2. Overall, there were a
few elements of Q1 that prevented a full swing in the quarter. Despite that, the YoY
growth rate was 7%, and we expect it to increase by at least 1 percentage point in H2.
So I believe that we will be able to produce performance that is not so inferior to ourcompetitors in the future.
Tokumoto: Thank you. My second question is also about C&V, this time about theconcept of profits. I think your tone was that after Q2, there are some factors about sales
that you can look at quite positively, such as therapeutic devices in North America, neuroand vascular products, or whatever they are. Is it safe to assume that the investments inthese areas will be visible as sales growth in Q2 or H2 to a certain extent?
I was just wondering if there is room for C&V to swing upward depending on the returnof benefits from these investments, so my question is from this perspective. That is allfrom me.
Hata: We are spending some more resources on sales investments right now. We are
spending more on important products, but it is not as if this will add up to the sameamount each quarter, so I believe we will be able to achieve the full-year guidance.
Especially in Q1, as I mentioned earlier, the majority of the foreign exchange rates' stock
impact was actually on Cardiac and Vascular, so the margin of Cardiac and Vascularshould have been 21% in Q1. In fact, it would have been a little higher, about 2
percentage points higher, if it had not been for the stock effect of the exchange rates.
We are not sure what will happen with the exchange rates, but at least even with thoseeffects, I believe we will be able to make it to the full-year forecast.
Tokumoto: That's all from me.
Moderator Yes. Next, Ms. Haruta from Credit Suisse Securities, please go ahead.

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 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 toconstitute an advertisement or medical advice.

Kasumi Haruta: My name is Kasumi Haruta from Credit Suisse Securities. Regarding
the profit improvement measures, you explained some of the measures that will be
implemented from H2, and you mentioned that you will raise prices strongly in H2. In
light of this, please tell us whether there are worries about restrained purchases oranything like that and specifically about your operations, how you are raising prices andthe progress you are making.
Muto: I'll go first then. As for the price policy, we will be working on it from H2, especiallyin Japan. We are already in the process of asking distributors and users for prices inJapan. We expect this to have a great impact, which will begin in October. The main
focus will still be on TMCS. This is where we will begin to reap the benefits in October.
As for other products, as I mentioned in my comments, the transfer of production to Costa
Rica is progressing smoothly, and in addition to this, improvements, domestic production
at Ashitaka Plant will also be improving. More than half of the full-year impact of JPY3.6
billion will emerge in H2.
Haruta: Thank you very much. As for TMCS, could you please review what items will be
subject to the price revisions?
Muto: Basically, the main items are basic medical equipment for hospitals.
Haruta: I see, thank you very much. My second question is about TMCS's
Pharmaceutical Solutions. As you explained, the timing of deliveries has changed, andthe Q1 result may have been a little lower, but there is no change in the outlook for thisyear's orders, or in the development of orders, so you are doing well, is that correct?
I understand that your automatic injectors are used for lecanemab, Eisai's treatment of
Alzheimer's disease. I would like to know if this is a relatively large project for yourcompany.
Hata: Thank you for your question. At the first, as for H1 and H2, it comes within our
expectations that the H2 result will be far greater than that in H1 in the current year as
there has been no such case in the past years. There is no need to worry about since
we will catch up in H2.
As for the treatment of Alzheimer's disease, while we are not allowed to clearly state thename of the drug under the Pharmaceutical Affairs Law, we can say it's not coming in
the current year. However, it's a big bullet in our GS26 growth strategy, a pipeline that

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 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 toconstitute an advertisement or medical advice.

we originally envisioned as a big project. I can't tell you how big it will be, but it won't besmall.
Haruta: By the way, are sales from the product likely to be seen in Japan?
Hata: I'm sorry, it's not easy to say how far including Japan, because of the restraint of
the contract, so I can't say for sure, although I think you can expect roughly what you
see in the news. I'm sorry.
Haruta: I understand. Thank you.
Moderator: Next, Ms. Yamazaki from Mitsubishi UFJ Morgan Stanley Securities, pleasego ahead.
Mie Yamazaki: Hello. I am Mie Yamazaki rom Mitsubishi UFJ Morgan Stanley Securities.
Thank you. I just have one question regarding VBP, volume-based purchasing, ofCardiac and Vascular neuro products in China, and I was wondering if you could shareany information that you have regarding the timing of VBP and the outlook for wholesale
prices. In addition to that, it would be helpful to know your thoughts on profitability. Thankyou.
Hata: TIS is by far the larger of the two in terms of the scale of our business, so I haveheard that the situation is similar. I have heard that VBP is finally coming (or alreadypartially affected) to the TIS Access and Neuro coils. However, what is important is thatthe number of procedures would indeed increase, as seen in the past case of drugeluting stents.
The number will increase, but by how much will prices fall for manufacturers? It is said
that if retail prices have declined more than 50%, distributors will not be able to absorb
the effects and manufacturers will also be affected. At the moment, we are assumingthat we will be able to stop the impact before it gets to that point.
However, there are risks involved here, and we have factored some of them into ourforecast. Our current view is that this is not a risk that will result in major deterioration inearnings at this time.
Yamazaki: I understand. Thank you.
Moderator: Next, Mr. Yamaguchi from Citigroup Global Markets.
Yamaguchi: I'm sorry, are you okay? I would like to ask you to check one point.

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 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 toconstitute an advertisement or medical advice.

Hata: Yes.
Yamaguchi: Thank you very much. Other companies said that in China, there weresome impacts of the anti-corruption law on tenders. Do you see that your company's
business is not affected because there are not many tenders, or if your company is awareof any impact, please let me know.
Hata: That has not come to me yet now. We are asking for a hearing, but that has neverbeen a topic of discussion, so I'll just go over it again. I don't think at the moment there
has been such impact so far.
Yamaguchi: Thank you.
Moderator: Next, Mr. Barker from Jefferies, please go ahead.
Stephen Barker: This is Stephen Barker, Jefferies. Thank you. I would like to ask twoquestions. First, I would like to ask about the number of surgeries in China and what kindof points you have made.
And do you have any updates on blood plasma transactions with CSL Plasma? In
particular, please let me know if the improved profitability of the Blood and Cell businesshad anything to do with the transactions with CSL or not.
Hata: Regarding the first one, China, I think it is best to look at TIS. More than 80% ofsales in China are from Cardiac and Vascular, and more than 80% of the Cardiac and
Vascular sales are from TIS. In terms of the number of surgery cases, the number
normally shrinks a little from Q4 to Q1 due to seasonal factors, but we have heard fromthe local sources that the number of cases was actually increasing in the current year.
In addition, the restrained purchases in anticipation of VBP, which I mentioned earlier,have now dissipated and revenue is rebounding.
The combination of these two positive factors, the increase in the number of cases andthe dissipation of the restrained purchases ahead of VBP, resulted in a QoQ increase ofabout 37% in China's TIS sales. So to answer your question about the number of cases
only, the number of cases has not decreased at all. In fact, we have heard that the
number is increasing.
As for the second question about CSL's update was, as we mentioned at the beginning,that the nomogram trial, enrolling, has been completed, not much has changed in terms

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 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 toconstitute an advertisement or medical advice.

of profitability. Since sales have not emerged in the first place, the same costs have been
going on for a long time, all the way from the previous quarter.
What is looking good for BCT's overall earnings right now is the improvement in anexisting business, which we call the completely core business. The good earnings were
due to the increase in the top line, improvement in costs, and price hikes. The figures for
CSL have not changed at all from the previous quarter.
Barker: Thank you very much. That's all.
Moderator: As there are no further questions, this concludes the Q&A session. Now weconclude the financial results briefing for Terumo’s Q1 results of the fiscal year ending
March 2024. Thank you for your participation.
Muto: Thank you.
[END]