Financial Results for the Fiscal Year
Ended March 31, 2020 (FY2019)

May 18, 2020

Naoki Muto
Chief Accounting and Financial Officer
Terumo CorporationDespite the COVID-19 Impact, Highest-ever Revenue and Operating Profit(billion JPY)

FY18

FY19

YoY%

YoY%
(FXN)

Revenue

599.5

628.9

+5%+8%

Gross Profit

326.5 (54.5%)

343.9 (54.7%)+5%+9%

SG&A Expenses

178.7 (29.8%)

184.5 (29.3%)+3%+6%

R&D Expenses

47.7 ( 8.0%)

50.6 ( 8.0%)+6%+8%

Other Income and Expenses

6.51.8--Operating Profit

106.6 (17.8%)

110.6 (17.6%)

+4%

+11%

Adjusted Operating Profit

122.1 (20.4%)

125.0 (19.9%)

+2%

+9%

Profit before Tax

102.7 (17.1%)

106.5 (16.9%)+4%

Profit for the Year

79.5 (13.3%)

85.2 (13.5%)+7%

111 JPY
128 JPY

109 JPY
121 JPY

Average Exchange Rate

USD
EUR

Revenue: All companies made positive growth. Slight impact of COVID-19 in Q4 mainly in China was seen
Adjusted Operating Profit: Grew due to increase in revenue of high margin products and partially unused
expenses in Cardiac and Vascular Company
Profit for the Year: FX loss decreased from 3.8 B JPY in FY18 to 3.5 B JPY in FY19
©TERUMO CORPORATION

2 /28

FY19 Results in Comparison to the Original Guidance (billion JPY)
Adjusted Operating
ProfitRevenueAmountvariance

AmountCommentsvariance
Lower revenue due to the COVID-19

CardiacandVascular

FY19 Results
FY19 Guidance

171.0

GeneralHospital

Bloodand Cell
Technologies

350.6

-6.4

357.0

107.0

©TERUMO CORPORATION

86.9

24%

85.0

impact(China) and sluggish result of+1.9

DES, etc. Higher profit due to partiallyunused expenses (e.g. promotion forrecovery from shipping delays)-15% 25.2-0.3

15% 25.5

171.0

107.2

25%+0.2

14% 15.1
14% 15.5

3 /28

Both revenue and adjusted
operating profit were in line withthe guidance-0.4

Both revenue and profit were higher
than the guidance excluding FX impact

Adjusted Operating Profit Variance Analysis
5.7

Grossmargin30.8(billion JPY)

4.9

Price
2.9
-2.9
MDR
8.1
JP-1.4
Reimburse- IT
SG&A
5.7
1.5
ment
invest- increase
-2.0
ment
R&D
Others-1.5
increase

7.8

FX

15.5

G/Pincrementby sales122.1 increase©TERUMO CORPORATIONCOVID-19
impact

14.4
125.0
110.6

106.6

FY18
FY18
Operating Adjusted
ProfitOperating
Profit2.74 /28

FY19
FY19
Adjusted Operating
ProfitOperating
ProfitRevenue by Region
Revenue

FY19
FY18

Year-on-Year Revenue Comparison
billion JPY

100% = 628.9 B JPY

YoY%Comments( ) FXN

Japan: Strongly driven by pain
management products and Alliance

31%

19%

196.3

Japan

8%

Asia and12%

Others©TERUMO CORPORATION

(+7%)

+9%

191.4
175.6

Americas
China+1%

121.1
120.4

Europe30%+4%

188.5(+12%)+2%

47.3(+8%)46.2+6%72.8
68.8(+9%)
5 /28

business in GH. Stable growth as a whole
Europe: Huge negative FX impact. Steadily
grew excluding FX impact, with high single
digit growth in C&V and mid single digit
growth in GH as well as TBCT
Americas: All companies made positivegrowth. Double digit growth in C&V
China: Due to the COVID-19 impact in Q4,significant slowdown of C&V, which had
been showing double digit growth until Q3
Asia and Others: All companies madepositive growth. Double digit growth inC&V as well as TBCT excluding FX impact

Revenue by Business Segment
Year-on-Year Revenue Comparison

Revenuebillion JPY

100% = 628.9 B JPY

YoY%( ) FXN

56%CardiacandVascularGeneral
Hospital

350.6
328.5+7%(+10%)+3%

171.0(+4%)

165.8

27%

17%

FY19
FY18Bloodand CellTechnologies©TERUMO CORPORATION

107.2+2%(+6%)

105.0
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Comments
Continuous growth close to 20% in
Neurovascular business. Double digit
growth excluding FX impact despite theCOVID-19 impact mainly in China in Q4
Driven by double digit growth in Alliancebusiness, pain management products aswell as adhesion barrier. Increased
demand for thermometers and antiseptic
hand gel for the preventive measuresagainst COVID-19
Driven by software update for theautomated blood collection system

Cardiacand Vascular: Double Digit Growth in Revenue and Profit Excluding FX(billion JPY)

FY18

FY19

YoY%

Major Topics

Impact( ) FXN

328.5

350.6

+7%

Revenue

Adjusted
OperatingProfit(%)(+10%)

80.9

86.9

+7%

(+16%)(25%)©TERUMO CORPORATION(25%)

TIS: Despite the COVID-19 impact in Q4,
showed double digit growth excluding FXimpact+13.0

Neurovascular: Close to 20% growth driven
by “WEB” and stroke devices+7.5

Cardiovascular: Driven by oxygenators+1.5

Vascular graft: Slight slowdown in Q4 due tothe COVID-19 impact+0.1

Increase in profit due to revenue expansion
in TIS and Neurovascular business.
Some budgeted expenses were unused
due to strong momentum in overall TIS and“WEB” in Neurovascular
7 /28

GeneralHospital: Revenue and Profit in Line with the Guidance(billion JPY)

FY18

FY19

YoY%

Major Topics

Impact( ) FXN

165.8

171.0+3%Revenue

AdjustedOperatingProfit(%)

(+4%)

26.8

25.2-6%(-7%)(16%)©TERUMO CORPORATION(15%)

General hospital products: Impact of thefinancial challenge in Indonesian national
health insurance, etc.

-0.3

Pharmaceutical: Driven by pain
management products and adhesion barrier+1.8

DM Healthcare: Special demand forthermometers due to the COVID-19 impact+0.5

Alliance: Double digit growth in line with theguidance+3.2

In line with the guidance reflecting thedepreciation increase due to capacity
expansion of Yamaguchi factory
8 /28

Blood and Cell
Technologies: Exceeded the Guidance Excluding FX ImpactFY18

FY19

YoY%

(billion JPY)

Major Topics

Impact( ) FXN

105.0

107.2

Revenue

Adjusted
OperatingProfit(%)+2%(+6%)

15.7

15.1-4%(+10%)(15%)©TERUMO CORPORATION(14%)

Blood center solutions: Driven by automatedblood collection system, software update andincreased demand of plasma collection fromconvalescent COVID-19 patients+2.4

Therapeutic solutions: Recoil of replacementwith the latest version of consoles indeveloped countries-0.1

Huge negative FX impact more than expected.
Controlled expenses and exceeded the guidance
excluding FX impact
9 /28

FY19 Year-end Dividend Proposal: 14.0 JPY
FY19 annual dividend proposal: 28.0 JPY
No change from the original guidance, considering the COVID-19 impact
FY19 Results
Profit for the year (B JPY)

85.2

EPS (JPY)

114

Dividend proposal/share(JPY)Dividend payout ratio©TERUMO CORPORATION

28.0

Interim 14.0
Year-end 14.0
24.6%

10 /28

Major Topics in FY19 Q4
Selected as “the Health and Productivity Stock Selection" for six
consecutive years (Mar)Corporate

Committed to supporting relief and recovery efforts from the Australian
bushfire disaster (Mar)Greenhouse Gas Reduction Target Approved by the SBTi (Mar)Announced manufacturing and marketing approval in Japan for“WEB” intrasaccular aneurysm treatment device (Jan)Announced US FDA premarket approval for “FRED” flow diverter (Jan)Business

Intrasaccular aneurysm
treatment device“WEB”

The reimbursement price for “FRED” flow diverter listed in Japan (Jan)Launched ”Fentanyl Citrate Tape for 1 Day Use” strong opioid
analgesic in Japan (Feb)©TERUMO CORPORATION

Flow diverter forAneurysm treatment“FRED”

11 /28

All Companies Contribute to COVID-19 Prevention and Treatment
Cardiac and Vascular: ECMO for severe patients
Having started to improve capacity since Jan. 2020

Percutaneous cardiopulmonary
support system

Support teams of physicians, technicians and nurses

General Hospital: Infection prevention from home to hospital
Thermometer designed in consideration of infection control
Various hand sanitizer lineup for hospital infection prevention

Thermometer

Hand sanitizer

Blood and Cell Technologies: Support latest treatments
Convalescent plasma collection using component collection system
Pathogen reduction shown efficacy against virus causing COVID-19

ComponentcollectionsystemApheresis system approved in US for emergency use in cytokine reduction©TERUMO CORPORATION

12 /28

Pathogenreduction
systemApheresissystem

FY19 New Product Pipeline
Category

ProductsRegion Launch

AccessClosure device for distal
radial approachJP

FY21Coronary

PTCA balloon

EU,Asia

Launched

Peripheral Stent (TRI)
Intrasaccular aneurysm
treatment device (WEB)Distal access catheter(Sofia EX)
NeuroMini balloon
Aspiration catheter

Cardiovascular
Vascular
graft

Generalhospital

PharmaJP, US Launched ceuticalUS

Launched

EU, US Launched
EU, US Launched DM andconsumer
healthcareJP
Launched

StentrieverJP

Launched

Next generation of oxygenator

JP

FY20

Heart lung machine (re-launch)

JP

FY20

Large-bore vascular graft(Triplex Advanced)

JP

Launched©TERUMO CORPORATION

Category

Products
Next generation of syringe pump

JP

FY20

Narcotic analgesic for
postoperative pain management(Fentanyl injection)JP

Launched

Adhesion barrier (AdSpray mini)JP

Launched

Continuous glucose monitoringsystem

JP

Launched

Blood glucose monitoring system

JP

FY20

Insulin patch pumpJP

Launched

Next version of blood pressuremonitor

JP

Launched

Next version of thermometerJPFY20

GlobalLaunched

Cell therapy Fill and finish system for celltechnologies therapy processing (FINIA)

13 /28

Region LaunchFY20 Annual GuidanceNot determined yet since it is difficult to rationally estimate theCOVID-19 impact on the guidance at the moment
To be promptly disclosed when it becomes available
Qualitative estimation of the COVID-19 impact
Relatively large on Cardiac and Vascular, and its extent may vary by segment andregion. Necessary to consider its timelike and phaselike changes
Limited impact on General Hospital as well as Blood and Cell Technologies©TERUMO CORPORATION

14 /28

The COVID-19 Framework of Cardiac and Vascular Procedures
Impact varies by procedural type (urgent/elective)
Not only procedural types but also various factors have influence on sales revenue
e.g. financial situation of hospitals, hospital-based/office-based, locality, guidelines from medical societies,
sales channels (direct/distributors) and patients’ sentiment
0%

PCI

10%

20%

30%

40%

60%

Elective

Urgent(time sensitive)

Peripheral
Intervention
Interventional
Oncology
Brain Aneurysm
Ischemic Stroke
Cardiac SurgerySurgical Graft
Stent Graft©TERUMO CORPORATION

50%15 /28

70%80%90%

100%Elective(non time sensitive)

Limited COVID-19 Impact on GH and TBCT
General hospital products and Pharmaceutical: The products are majorly related
to medical infrastructure and hospitalization
GeneralHospital

DM Healthcare: Diabetes is a chronic disease and DM products are for homecare.
In Healthcare, carefully monitor recoil from the special demand for thermometers
Alliance: Majority of the business is contract manufacturing of drug and device forchronic diseases

Bloodand CellTechnologies

Blood center solutions: Despite slight decline in demand due to postponement ofsurgical cases, increase in demand for automated blood collection system forhigher efficiency in blood collection has been seen
Therapeutic solutions: Limited impact on the demand as the majority of blood
therapies are for chronic diseases
Cell therapy technologies: Carefully monitor slowdown in cell therapy studies bypharmaceutical companies and research institutes©TERUMO CORPORATION

16 /28

FY20 New Product Pipeline

Having integrated certain impact by COVID-19, still need to carefully
monitor further delay in R&D, etc.

Category
CoronaryImaging
Oncology

Products
Steerable sheath
PTCA balloon(manufactured by Essen Technology)

CardiovascularCategory

JP

Vasculargraft

China

IVUS catheter

JP

Biodegradable drug eluting
microspheres

EU

Peripheral embolization plug

US

Flow diverter
NeuroRegion

JP, USBalloon guide catheter

EU

Carotid stentJP

Intrasaccular aneurysm
treatment device (WEB)JP

Oxygenator

JP

Heart lung machine (re-launch)

JP

Surgical stabilizer©TERUMO CORPORATION

Generalhospital
Pharmaceutical

Products
Abdominal aortic stent graft

US

Syringe pumpJP

Safety IV catheter

JP

Syringe pump for open TCI

EU,Asia

Strong opioid analgesic(Fentanyl citrate tape for 1 day use)

Continuous glucose monitoring system
DM andconsumer Blood glucose monitoring system
healthcare
Thermometer

Global17 /28Region

JPJPJPJPFY20 Liquidity and Cash Allocation

ManagingLiquidity

40 B JPY fund-raised in FY19
(FY19 year-end cash on hand: worth approx. 3.2 months of revenue)
For further preservation purpose, having concluded commitmentline
contracts for 60 B JPY

Continue investments for further growth post COVID-19* Pursue M&A opportunities for “Sustainable and Profitable Growth”
FY20CashAllocation©TERUMO CORPORATION

Put non-urgent expenses and investment projects on hold
Keep annual dividend at 28.0 JPY unchanged for the time being(Following our current policy, plan to restart dividend increase after
the full recovery from the COVID-19 impact)

18 /28Reference©TERUMO CORPORATION

19 /28

FY19 Revenue and Growth by Region
BusinessSegment

Japan

Cardiac andVascular(billion JPY)

Overseas

Total

Subtotal

Europe Americas

China

Asia

50.9 (+6%)

299.6 (+11%)86.2 (+8%)

138.4 (+14%)

39.5 (+9%)

35.6 (+13%)350.6 (+10%)

Out of C&V
InterventionalSystems*

38.0 (+6%)

246.0 (+13%)70.1 (+9%)

109.5 (+16%)

37.0 (+9%)

29.3 (+12%)284.0 (+12%)

GeneralHospital

132.9 (+4%)

38.1 (+4%)

9.3 (+3%)

9.1 (+10%)

2.5 (-2%)

17.2 (+2%)

171.0 (+4%)

Bloodand Cell
Technologies

12.3 (-2%)

94.8 (+7%)

25.6 (+5%)

44.0 (+8%)

5.3 (+5%)20.0 (+10%)

107.2 (+6%)

Total

196.3 (+4%)

432.6 (+10%)

121.1 (+7%)

191.4 (+12%)47.3 (+8%)

72.8 (+9%)

628.9 (+8%)*Including Neurovascular business©TERUMO CORPORATION(YoY%): FXN
20 /28

Operating Expenses
FY18(billion JPY)FY19YoY

YoY%

YoY%(FXN)

Salaries & Wages

87.4

89.8+2.4+3%+6%

Sales Promotion

18.2

19.7+1.4+8%+10%

Logistical Costs

13.6

13.9+0.3+2%+5%

Depreciation &Amortization

14.3

18.9 *+4.6+32%+35%

Others45.1

42.3 *-2.9-6%-4%

SG&A Expenses Total

178.7 (29.8%)

184.5 (29.3%)+5.9+3%+6%

R&D Expenses

47.7 (8.0%)

50.6 (8.0%)+2.9+6%+8%

Operating Expenses
Total

226.3 (37.8%)

235.1 (37.4%)+8.8+4%+6%*Reclassification between Depreciation & Amortization and Others due to IFRS 16 (Lease Accounting)©TERUMO CORPORATION

21 /28

Quarterly Results(billion JPY)

FY18Q4FY19Q1(Apr-Jun)(Jul-Sep)(Oct-Dec)(Jan-Mar)

155.9

152.5

154.8

162.9

158.8

Gross Profit

84.3 (54.1%)

85.2 (55.8%)

86.3 (55.8%)

87.2 (53.5%)

85.3 (53.7%)

SG&A Expenses

46.7 (29.9%)

44.5 (29.2%)

45.1 (29.1%)

47.2 (29.0%)

47.7 (30.1%)

R&D Expenses

11.6 (7.5%)

11.8 (7.8%)

12.5 (8.1%)

12.7 (7.8%)

13.6 (8.6%)

Other Incomeand Expenses

2.10.4

1.3

-0.2

0.4

Operating Profit

28.2 (18.1%)

29.2 (19.1%)

30.0 (19.4%)

27.1 (16.6%)

24.4 (15.3%)

Adjusted
Operating Profit

30.9 (19.9%)

33.9 (22.3%)

33.1 (21.4%)

31.4 (19.3%)

26.6 (16.7%)

USD

110 JPY

110 JPY

107 JPY

109 JPY

109 JPY

EUR

125 JPY

123 JPY

119 JPY

120 JPY

120 JPY(Jan-Mar)

Revenue

Average
ExchangeRate©TERUMO CORPORATION

Q2

22 /28Q3

Q4

Adjusted Operating Profit: Adjustments(billion JPY)

FY18

FY19106.6

110.6

Adjustment 1. Amortization of acquired
intangible assets+14.6+15.7

Adjustment 2. Non-recurring profit or loss

+0.9

-1.3 *

122.1

125.0

Operating Profit

Adjusted Operating Profit<General examples of adjustment items>• Acquisition related cost
• Lawsuit settlement* FY19 main items inAdjustment 2. Non-recurring profit or loss

Amount• Impairment loss

Business reorganizing cost

+1.5

• Restructuring loss
• Nonlife insurance income

Disaster insurance income for Puerto Ricofactory-1.2• Loss on disaster

Others-1.5• Other one-time profits & losses©TERUMO CORPORATION

23 /28CAPEX and R&D ExpensesAmortization ofacquired
intangible assets
and goodwill
45.4

39.1

(billion JPY)
89.5

Amortization of acquired
intangible assets
60.8

Under IFRS since FY17

42.0

44.0

20.8

14.5

14.6

24.6

27.6

29.4

43.6

47.7
15.7

CAPEX
32.0

CAPEX = C.i.P. record basis

Depreciation
41.3

Expand investment inproduction capacity andspace as well as IT in FY1947.7• Depreciation includes
amortization of nonacquired intangible assets& depreciation ofcapitalized R&D
expenses
Lease depreciation(IFRS16) is not included inFY19 result

50.633.6

Further promote R&D
activities mainly for TIS,
Neurovascular and TBCT

R&DExpenses

Capitalized R&D expenses
are included in CAPEX
FY18: 2.4

FY16

JGAAP <- -> IFRS©TERUMO CORPORATION

FY17

FY18
24 /28FY19

FY19: 4.8

Cash Flows

Operating CF+117.5

Investing & Financing CF-73.6(billion JPY)

24.8
52.4

Depreciation
andamortization

Incometaxes

16.6
Working
capitalincrease

89.5

106.5

3.5

CAPEX

123.0

©TERUMO CORPORATION

166.9

Dividends Short-term
debtProfitbefore tax

Cash at theend of FY1820.540.0

OthersCAPEX = C.i.P. record basis
Cash at the end of each period is equal to “cash and cash equivalents” on B/S

25 /28Cash at theend of FY19

Foreign Exchange Sensitivity
Annual impact of 1 JPY depreciation(billion JPY)

USD

EUR

CNY

Revenue

1.7

0.8

2.4

Adjusted Operating Profit

0.0

0.5

1.3

<Reference> Impact when JPY is depreciated by 10%North
Latin
America America

Adjusted Operating Profit©TERUMO CORPORATION

-0.1

1.0

EMEA

AsiaEUR

OthersCNY

Others

6.5

1.3

2.03.626 /28

The Status of Convertible Bonds
Detail of the bonds (issued in Dec. 2014)
Maturity

Aggregateprincipal amount(billion JPY)

Dec. 2019*After two-for-one stock split implemented in Apr. 2019

CouponConversion
Price(JPY)

Contingent
conversion price(JPY)

50.0

0.0%

1,919

2,495

Approx. 26 M sharesDec. 2021

50.0

0.0%

1,919

2,495

Approx. 26 M shares

Total

100.0

Number of sharesrequired to be issued
for conversion

Approx. 52 M shares

The status of conversion (as of Apr. 30, 2020)
Amount of shares issued for conversion(% against the total amount of bonds)

Number of shares issued for conversion(% against total number of issued shares)

Convertible bonds
due Dec. 201950.0 B JPY (100.0%)

26 M shares (3.4%)

Convertible bonds
due Dec. 2021

45.2 B JPY (90.5%)

23 M shares (3.1%)

Total

95.2 B JPY (95.2%)

49 M shares (6.5%)

Bonds

Allocated treasury shares to the shares issued for conversion• Status of treasury shares: 5 M shares(at the end of Apr. 2020, treasury stock cost per share: 1,949JPY, % against total number of issued shares: 0.8%)©TERUMO CORPORATION

27 /28

IR Contact
Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp
Among the information that Terumo discloses, the forward-looking statements including
financial projections are based upon our assumptions using information available to us at thetime 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 variousfactors. Factors affecting to actual results include, but are not limited to, changes in economicconditions surrounding Terumo, fluctuations of foreign exchange rates, and state ofcompetition.
The market share information in this presentation is partly derived from our own independentresearch.

©TERUMO CORPORATION

28 /28