Terumo Corporation
November 6, 2013

Q&A at Financial Announcement for Q2 of FYE Mar. 2014
The principal Q&A given during financial announcement for Q2 of FYE Mar. 2014 held on
November 6, 2013 are presented as follows. Certain details have been expanded or modified toprovide readers with a deeper understanding of Terumo Corporation’s performance and activities.
Q1: Would it possible to overcome the current challenges in plant productivity for
General Hospital new products and achieve the sales growth of mid-term plan?
What would be countermeasures for?
A1: General Hospital is one of important business pillars for the company. We will
improve its profitability while expanding sales. There are challenges such as one
mentioned as well as downward pressure on market price. However, we expect new
products recently launched to drive the business going forward. The production ofthese will be promptly transferred to overseas plants to generate profit.
Additionally, our new injectable acetaminophen, which is subject to national early
regulatory approval initiative, has received manufacturing approval andreimbursement price. It will take a little more time to generate revenue, however it
is sure that they steadily contribute to the company’s growth.
Q2: Regarding the neuro intervention product inventory adjustment in China, whichoccurred in Q1, was it already resolved? And, do you see any impact of China
business climate “cleanup”, which some US and European companies are currentlyaffected, onto your Chinese business?
A2: The Q1 year-on-year sales growth of our Chinese business was only 4% due to neurointervention product inventory adjustment at distributor. The growth in Q2 wasimproved to 19%. We have seen that “cleanup” practice, which was triggered bybribery scandal of a multinational pharmaceutical company, has been affecting on
promotional activities of pharmaceutical companies, however we have seen very
little impact on medical device companies. High expectation for future growth in
our Chinese business remains the same.
Q3: The company originally expected to invest 2.2 billion yen in the improvement ofquality management system in TCVS for 1H but ended up with 2.7 billion yen. Did
I understand correctly? Do you still expect the investment in 2H to be 1.2 billion
yen as originally forecasted?
A3: You are right about the investment in 1H. We expect the investment in 2H to be1

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 on 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.

Terumo CorporationNovember 6, 2013
about 1.3 billion yen and completed at the end of this fiscal year.
Q4: To achieve FY13 operating income forecast, in 2H, the company needs to achieve alittle less than 60% increase year on year. What will drive such operating income
increase in 2H?
A4: From 1H to 2H, we expect to have the increment of 9.0 billion yen in operating
income. Looking at the breakdown, 2 billion yen will come from decrease in cost for
quality system improvement in TCVS and decrease in R&D expense for Duraeart II.
The remaining 7.0 billion yen will come from sales increase and improvement ofplant productivity. The sales increase is mainly contributed by Interventional
Systems products such as access devices and neuro endovascular products. Smart
Pump from General Hospital business, and therapeutic apheresis system andautomated processing system from Blood Management business will also contributeto the sales increment.
Q5: In 1H, tailwind of weak yen was offset by some unexpected temporary factor suchas neuro intervention product inventory adjustment at China distributor. Thecompany doesn’t change its FX projection for 2H. Does it mean that the company
expects new temporary factor to increase the cost in 2H? Or, does the company
expect any factors to exceed FY13 projection?
A5: Those unexpected temporary factors affected mainly Q1. Most of them have been
resolved in Q2. Yes, weak yen helped spur the sales growth in 1H. However, at thispoint in time, we don’t see any new unexpected factors which potentially increase
cost in 2H. At all events, we will focus entirely on steadily achieving the plan.
Q6: What level of peak sales would you expect for peripheral stent (below the knee, forEU market) and needleless system? What competitive advantages does yourneedleless system have?
A6: We don’t expect much sales contribution from both products in 2H. Our needlelesssystem features less solution residue at the plug. It will be replaced with ourexisting one for the future.
Q7: There is a perspective that the reason why sales of FFR technology doesn’t grow inJapan is because the number of PCI cases is dropping. How would you see?
A7: In Japan, we have seen some trend in which stent usage is controlled. However, we
expect the patient population who needs stent will continuously grow in Japan due
2Among 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 on 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.

Terumo Corporation
November 6, 2013
to aging. Additionally, technology such as Doppler blood flow measurement, once itis advanced, will detect more patients. Therefore, we don’t expect the number of
PCI cases to rapidly drop like US and European markets.
Q8: The weak yen helped 1H results. Do you expect the same circumstance or scenarioin 2H?
A8: Yes, the weak yen helped spur the performance in 1H. We maintain FY13 forecast
since it is still difficult to foresee FX. We will focus entirely on steadily achieving
the plan.
Q9: As for the changes in Blood Management business environment (decrease indemand), did you take that in consideration at the time of CaridianBCTacquisition?
A9: Since we have already seen such changes even in Japanese market for five years,
this is expected circumstances. Based on this assumption, we acquired the companycentering on platelet technologies and not on red blood cell ones.
Q10: Taking the investment into venture capital fund in Silicon Valley as an example, it
seems that the company is making greater efforts to introduce externaltechnologies. In terms of technology development, what kind of goal is the company
pursuing?
A10: We have done some business and technology acquisitions thus far and willcontinue to do it when needed. It is important to continuously improve the value ofones we acquired, further leading sustainable business growth. Even for thetechnologies acquired, we will promote a practical approach in which our own
engineers improve the value of them.
Q11: Do you also expect some effect of improvement in plant productivity in Q3 and Q4?
A11: We expect continuous improvement during and after the second half.
Q12: The positive impact of weak yen onto gross profit seems small. Could I understandthat was because overseas production ratio was higher than before? What is thetarget of overseas production ratio?
A12: You are absolutely right. The increase in overseas production ratio contributed tothat. It was 43.2% in 1H and will continuously be grown in 2H.
3

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 on 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.