Financial Results for the 2nd Quarter (First Half) of
Fiscal Year Ending March 31, 2023 (FY2022)

November 10, 2022

Naoki Muto
Chief Accounting and Financial Officer
Terumo Corporation

I am the CAFO, Muto. I will now explain the 2nd-quarter results
for the fiscal year ending March 2023.

1

Safe Harbor for Forward-Looking Statements and Use ofDocument
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. 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

2 / 252

FY22 Q2 Results Highlights
RevenueFirst time exceeding 200 billion yen; highest-ever revenue
Number of procedures and healthcare demand recovered, all regions outside Japan grew
year-on-year even when excluding FX
Plasma Donation System “Rika” sales began

Operating Profit
Despite cost increases due to inflation, gross profit grew year-on-year in double digits
Portfolio alignment (A part of Cell Therapy Technologies in TBCT)
Adjusted operating profit bounced back to increase year-on-year©TERUMO CORPORATION

3 / 25First, the highlights of this earnings announcement.
Revenue returned to a growth pattern, with all three companies
growing positively year-on-year. The Group achieved quarterly
revenue exceeding 200 billion yen for the first time, for its
highest-ever result.
The recovery of both number of procedures and healthcaredemand was steady, and all regions outside Japan grew yearon-year even when excluding FX impact.
In addition, the Plasma Innovation began sales in this quarter.
In profit, although impact from inflation caused cost increases, it
was exceeded by increased revenue to result in double-digit
11% gross profit growth.
We continue to align our portfolio. As part of this, we sold theAutologous Biologics business, a part of Cell Therapy
Technologies in Blood and Cell Technologies Company andbooked 3.5 billion yen as impairment of the goodwill from thatbusiness.

3

Finally, the turnaround in this quarter to increased adjusted
operating profit year-on-year is a very good sign.

3

P&L Results
Revenue was 400 billion yen, gross profit exceeded 200 billion yen for highest-ever result
Operating profit includes 3.5 billion yen loss from sale of autologous cell preparation business In adjusted operating profit, Q2standalone returned to year-on-year increase
100M JPY
Revenue
Gross Profit（%）

SG&A Expenses（%）

R&D Expenses（%）

Other Income andExpenses
Operating Profit（%）

Adjusted Operating Profit（%）

Profit before Tax（%）

Profit for the Year（%）©TERUMO CORPORATION

FY 21
Q2 YTD

FY 22
Q2 YTD

3,446
1,862

4,033
2,070

(54.0%)(51.3%)

955

1,171

(27.7%)(29.0%)

Change vs.
FY21 Q2

Changeexcluding FX
impact

17%
11%

5%
2%

23%

9%

247

297

(7.2%)(7.4%)

-2

-42

-

-

659

560

-15%

-16%

(19.1%)(13.9%)

741

704(21.5%)(17.5%)

653

546(18.9%)(13.5%)

500

403(14.5%)(10.0%)

20%

-5%
-16%
-19%

8%

-10%

FY21
Q2

FY22
Q2

1,729
920

2,060
1,054

(53.2%)(51.1%)

490

605(28.4%)(29.4%)

Change vs.
FY21 Q2
19%
15%
23%

130

157

(7.5%)(7.6%)

-3

-37

-

296

255

-14%

(17.1%)(12.4%)

339

345(19.6%)(16.8%)

293250(16.9%)(12.1%)

221

179(12.8%)(8.7%)

20%

2%
-15%
-19%

4 / 25Here are the P&L results.
Revenue exceeded 400 billion yen year-to-date. This was a 17%
increase from the same quarter of the previous year. Positive
impact by FX was 41 billion yen. Positive growth was 5% whenexcluding FX.
In Q2 standalone, revenue grew 19% year-on-year to reach 206
billion yen. Positive impact by FX was 24 billion yen.
Gross profit was impacted by macro environmental changes, it
continued the trend from the 1st quarter to reach the highestever result for a quarter, 100 billion yen.
Operating profit was 25.5 billion yen, which includes theimpairment that I just mentioned. This resulted in a temporarily
low level, but we will book the capital gain by sale of Nutritionbusiness in 2nd half, then no impact remains in the full financial
year.
Adjusted operating profit for the standalone 2nd quarter turned
around to grow positively, which in turn lessened the YTD profit

4decrease.
Next slide, please.

4Operating profit variance analysis (Q2)
(100M JPY)
G/P increment by sales increase:
Stability increase same amt. as Q1
Gross margin:

FX impact

R&D spend increase

SG&A increase:

Price increase,reimbursement price revision

Gross margin:

G/P increment bysales increase+5

Inflation impact increases, but mix steadily
improving, impact was similar as Q1

255

SG&A, R&D increase:
Within plan; control while spending asnecessary in 2nd half
FX:
Yen depreciation more than Q1-7
FY21 Q2 FY21 Q2
Operating Adjusted
ProfitOperating
Profit©TERUMO CORPORATION

Price:
Price increase impact more than Q1

FY22 Q2 FY22 Q2Adjusted Operating
ProfitOperating
Profit5 / 25Here is the 2nd-quarter standalone variance analysis.
“GP increment by sales increase” was 5.1 billion yen, the sameamount as in the 1st quarter.
“Gross margin” was the same amount as the 1st quarter, andthough inflation impact remained, mix improvement continued
steadily.
In “Price,” the price increase effect was 500 million yen,
expanding from the 1st quarter.
In “SG&A, R&D increase,” we invested where necessary while
maintaining control and staying within plan thanks to prioritizing
expenses in company, region and HQ.
In “FX,” it continued positive impact by yen depreciation from Q1.
As the result, the turnaround in this quarter to increased adjusted
operating profit year-on-year.
Next slide, please.

5Operating profit variance analysis (Q2 YTD)
(100M JPY)

G/P increment by sales increase:
Increased C&V and TBCT demand led to steadyincrease©TERUMO CORPORATION

FX impact

FY21
FY21
YTD
YTD
Operating Adjusted
Profit Operating
19.1% Profit

R&D spend increase-14

SG&A increase:

Price increase,reimbursement price revision

Gross margin:

G/P increment bysales increase+7

Gross margin:
Inflation impact increases, but increased sales of
C&V with mix improvement
Price:
Expanded price increase impact by QoQ
SG&A, R&D increase:
Within plan; control while spending as necessary
in 2nd half
FX:
FY22
FY22
YTD
YTD
Adjusted Operating
Operating Profit
Profit13.9%

Yen depreciation more than Q1

6 / 25Here is the YTD operating profit variance analysis. I will explain
the discrepancy almost 5% decrease from 19.1% in the last year
to 13.9 % in this year.
Please be accepted to explain the breakdown by % although thegraph shows the amount.
In “Gross margin,” factors including accelerated product mix
improvement in C&V company and TBCT and no moreproduction adjustment helped to stem the impact of expanding
inflation such as material cost, electricity and gas cost as well as
start-up cost of plasma innovation.
While “SG&A, R&D increase” was 1% YoY, we controlled 1%
comparing with the expenditure before COVID-19.
FX impact was positive in sales amount, but sake % declined
1 %. The reason why US dollar sensitivity makes positive insales but neutral in profit.
Finally, 1% coming from the impairment, total becomes 5%
decrease of profit.

6

Next slide, please.

6

Revenue by Region(C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, PS: Pharmaceutical Solutions, TIS: Interventional Systems)

FY22 Q2
YTDRegional
breakdown

Japan

Europe
19%

34%
China

12%

492
532
514

Asia and
Others©TERUMO CORPORATION( ) FXN-1%

301 555
683
338
386
772
825

462

Americas

Q2 YTD

935
1,024
1,012

Q2

（Q1）

FY20
FY21
FY22

25%

10%

FY 22 Q2 YTDYoY change

Revenue (100M JPY)

519
719

1,063
1,381

101 203147 301
190 384
165 315
374
193
484
251

Comment
All three companies affected by 7th COVID wave
impact on demand However, 3% revenue increased
QoQ, new products ex. RelayPro grew

13%
(5%)

Due to recovery from COVID, all companies grew,
driven by TIS, Blood Center, others TA,
Neurovascular, Pharmaceutical Solutions all grew indouble digits. QoQ,performance, impact of seasonal
factors led to same level result as Q1

30%
(7%)

All companies continued double-digit growth, led by
C&V, where number of procedures is recovering. FX
led sales increase Overall growth driven by TIS,
Blood Center QoQ as well.

27%
(8%)

All companies continued double-digit growth, led by
TIS.
QoQ, TIS and Blood Center Solutions saw slightseasonal decreases but saw no lockdown impact

29%
(14%)

TIS and Blood Center businesses led acceleration ofdemand recovery; double-digit growth even excluding
FX QoQ as well, demand recovery led to growth in allcompanies, driven by TIS, Hospital Care Solutions,and Blood Center Solutions

7 / 25

Next is revenue by region.
In Japan in the standalone 2nd quarter, the 7th wave of COVID
resulted in decreased revenue at all three companies. However,new products RelayPro, AZUR, Nagomi, etc. grew.
In the EU, both 1st half and Q2 standalone revenue saw a steady
5% increase when excluding FX. Q2 was just below Q1, but thiswas due to seasonal factors and the overall trend remained
unchanged.
In the Americas, it was high growth thanks to FX. 1st half revenue
grew 7% when excluding FX. The number of procedures isrecovering and this shows that we are returning to a growthtrajectory. The TIS Business of the Cardiac and VascularCompany grew 2% compared to the 1st quarter, even when
taking seasonal factors into account.
In China, 1st half revenue grew 8% when excluding FX. There
was no impact from the subsequent lockdown.
Asia and others were the fastest growing, with 14% in 1st half,713% Q2 standalone revenue growth. Drivers included expansion
in the number of procedures for the Cardiac and VascularCompany and increased demand for the Blood and Cell
Technologies Company Blood Center business.
Next slide, please.

7

C&V:

6% growth when excluding FX.Number of procedures returned to growth trend including
U.S. Segment profit remains impact of FX and inflation(100M JPY)
YTD

Q2

Comment

YTD
YoY( ) FXN

2,354
1,943

TIS:

Excluding FX, 7% growth overseas in YTD Q2; Number ofprocedures returned to growth trend, Oncology andPeripheral intervention drove. Begun new products sales,
microcatheter and guidewire for coronary in U.S.

Neurovascular:

Even excluding FX, EU/US continued double-digit growth
WEB for aneurysm expanded further in North America,
while new product impact grew similarly with FREDCV:

Steady along with recovery in number of proceduresTA:

Thoracic stent graft RelayPro strong.
Thoraflex Hybrid expanded in EU/US+26

Profit:Profit grew although inflation impact continued. % sakes
declined due to Yen decpreciation

+38

1,494
Revenue

+21%
(+6%)

821

948

1,186

+25%

508

529

320
Segment
Profit

+4%
(-3%)

196

214

249

+275

+71

+16%

Profit%

FY20 FY21 FY22

FY20 FY21 FY22

21%

24%

©TERUMO CORPORATION

26%

22%

23%

21%
8 / 25

I will now explain the results by company. First, the Cardiac and
Vascular Company.
Overall revenue was 230 billion yen year-to-date for 21% yearon-year growth, or 6% when excluding FX. This was a slightdecrease from Q1, but that was due to seasonal factors inplaces including the EU and China.
Number of procedures recovered more slowly in Japan, where
COVID impact occurred, but was better than Q1 in the US. Also,
each successive month of Q2 showed improvement. The EU,
China, and Asia were steady, returning approximately to plannedlevels.
In TIS, China and Asia saw double-digit growth when excluding
FX, while the EU and US grew steadily in the single digits foroverall 7% growth outside Japan. New product pipeline including
coronary artery microcatheter and guidewire, as well as
oncology and peripheral intervention, drove high growth.
Neurovascular maintained double-digit growth in the EU and US8even when excluding FX. WEB for aneurysm expanded further inNorth America, while new product impact grew similarly with
FRED. The revenue decrease from Q1 was due to seasonal
factors, and the overall trend remained unchanged.
CV was steady and only impacted by seasonal factors; here too
the overall trend remained unchanged.
TA saw strong results from the new thoracic stent graft product
RelayPro. It became the fastest growing new product in the 1st
half. The Thoraflex Hybrid product also grew in the EU and US.
Profitability temporarily dipped with up-front investments in future
sales expansion, including the Neurovascular business shift todirect sales in Korea.
Next slide, please.

8

TMCS:

Sales declined in Q2 due to the seventh COVID wave, Sales increase YTD Q2
Segment Profit; Decrease by inflation and FX impact by storong CNY(100M JPY)
YTD

Q2

Comment

YTD
YoY( ) FXN

818

920

Revenue

938

+2%
(-1%)

426

482

478

-1%

117

134
81

Segment
ProfitProfit%

65

70
-47%

FY20 FY21 FY22

FY20 FY21 FY22

14%

15%

15%

9%

Although sales declined in Japan due to 7th
COVID wave, overseas covered with impact
by Yen depreciation. Excluding FX, sales
ddeclined a little.

+8

LCS
Life Care
Solutions:

Demand for thermometers, blood pressure
monitors decreased after extraordinary
demand in previous year Japan price ofblood glucose self-measurement dropped
amid stiff competition-12

PS
Pharmaceutical
Solutions:Pharmaceutical container was sales strong,
especially outside Japan, for steady 15%
revenue growth YTD+22Profit:In addition to materal cost inflation after 2nd
half in FY21, utility cost inflation increased.
As well. FX negative impact by CNY
continued

37-39%(-33%)©TERUMO CORPORATION

HCS
Hospital Care
Solutions:15%

8%
9 / 25“TMCS” is the Terumo Medical Care Solutions Company.
Its overall revenue was just above 90 billion yen, or minus 1%
growth when excluding FX. However, Q2 standalone revenue
increased 3% over Q1, showing signs of recovery.
Hospital Care Solutions was 2% growth in 1st half. We saw arevenue decrease due to 7th-wave COVID impact in Japan, but
regions outside Japan covered this. Revenue decreased a little
when excluding FX.
Life Care Solutions revenue was impacted by the return tonormal of demand for products including thermometers andblood pressure monitors, which saw extraordinary demand in theprevious year. Another impact was the intensification ofcompetition in products for self-measurement of blood glucose,which pushed prices down.
Pharmaceutical Solutions had a strong Q2 with brisk sales ofpharmaceutical containers outside Japan, for 15% year-to-dategrowth.

9

Segment profit declined by electricity and gas cost inflation in Q2
standalone in addition to material cost inflation as well as CNY
appreciation.
Next slide, please.

9

TBCT:

Sales grew with double digit and profit declined because of Plasma Donation System
Began Plasma donation “Rika” sales(100M JPY)
YTD

Q2

Comment

YTD
YoY( ) FXN

740
520

Blood Centers:

582

Revenue+27%(+12%)

272

299

395

+32%

89

118

Cell Processing:

91
50

Segment
ProfitApheresis:

58

-23%
(-24%)

55-5%
Profit:Profit%

FY20 FY21 FY22

FY20 FY21 FY22

17%

18%

©TERUMO CORPORATION

20%

12%

19%

Global recovery in transfusion demand. In
EU/US, automation innovation in whole bloodcollection contributed to increased sales.
Component collection also contributed tosales growth in EU/US, China, etc. Plasma
donatuon system “Rika” sales began
Steady demand increase along withexpansion of cell therapy procedures. Even
excluding FX, high growth of 9%
As the need for cell therapy expands, there issteady demand for cell processing
instruments. This includes autologous
preparation business, the sell-off of whichconcluded in October.

+119

+28

+10

Declined profit due to the investment
advanced for Plasma Innovation as well as
inflation.

14%
10 / 25

Next is Blood and Cell Technologies Company.
1st half revenue increased 27%, Q2 standalone increased 32%,
as well as double digits growth when FX excluding.
In the Blood Center business, continuing from Q1, global
demand for transfusions recovered. In the EU and US, whole
blood automation innovation also contributed to the revenue
increase. Component collection grew in the EU, US, and China.
In addition, Plasma Innovation sales began in Q2.
Therapeutic Solutions saw steady demand in line with anincreased number of cell therapy treatments. Excluding FX, it
grew 9%.
As the need for cell therapy expands, there is steady demand forcell processing instruments. Also, this sub-segment includes
Autologous Biologics, whose sale I explained in the P&L slides.
The sale was completed in October.
In profit, it was decrease due to up-front investment in Plasma
Innovation and inflation as well. However, thanks to extreme

10sales growth in core business, it was increase QoQ base.
Next slide, please.

10

Action Ahead
For 2nd half
Implementation of price increase more in 2nd half
To squeeze SG&A expenses control

For Mid. & Long
Anti-inflation in Logistics cost

Selection of freight & air, restructuring of global
logistics network

Anti-inflation in Material Cost

Creation of global optimal procurement route

Anti-inflation in Wage

Stable production & speed-up global optimal
production as in Costa Rica, Vietnam

VC2

Began GBS in Europe & U.S.A. as of Nov 1st©TERUMO CORPORATION

11 / 25

For profitability improvement, we started further price increasing.
We boost the control of expenditure in both production and sales
promoting expenses.
In middle and long term, we implement the measures followingthat CEO Sato spoke, today.
The one is cost saving of logistics. Freight company and air
selection as well as reforming global logistics network.
Secondary, for material cost inflation, we improve global
procurement network.
The third, for wage increase, we are speeding up the shift toproduction optimization with continuing stable production in thefactories. This is important for minimizing the FX impact.
Finally, in HQ function, we started GBS in EU/US to make global
process scandalization and process effective as the one of Value
Creation through Collaboration called VC2 actions.
Speak about our guidance, because sales trend is strong, and
FX is favorable, we will achieve the target of profitability even the11business environment is tough. Finally, we did not change theguidance because we need to see the impact by inflation and FX
impact longer.

11

Dividend guidance revision
Continue to increase dividend in a stable manner with the mid-term aim of 30%
dividend payout ratio
FY22 annual dividend of 38 yen (2 yen above previous guidance)

Previous guidance
Dividend / share(yen)
Dividend payout
ratio

Current guidance

34.0 yen38.0 yenInterim 17 yen
Period end 17 yenInterim 19 yen
Period end 19 yen

26.9%

28.4%

*FY22 guidance Profit for the year: 100 billion yen; EPS: 133.88 yen*Interim dividend set according to “Terumo Revises Interim Dividend Distribution and Year-End Dividends Forecast for Fiscal Year Ending March 31, 2023”
communication released November 10, 2022.

©TERUMO CORPORATION

12 / 25

Regarding our dividend guidance for this fiscal year, taking into
account the 1st-half results, we will raise the interim and yearend dividends by 2 yen each, for a full-year increase of 4 yen, to
38 yen total. The interim dividend increase was already decided
and announced.

12

Product Pipeline and Major Topics*C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Terumo Interventional Systems; HCS: Hospital Care Solutions; LCS: Life Care Solutions

Major Product Launch, Approval Status

Field
TIS

GeneralDrug-eluting coronary stent

Neurova
Flow diverter stentscularproduct name
Ultimaster Nagomi
FRED X

Thoracic aorta stent graft

Relay Series

HCS

General infusion pump

Terufusion infusion pump 18
model

TBCT

Patch insulin pump

Cell expansion system

To FY21
Japan sales

FY22

FY23 and beyond

EU launch

Asia, Latin America
launch

Begun

TA

LCS

Complete

Medisafe WITH series

Quantum Flex

EU, US sales

US sales expansion, regional expansion

EU sales,US, Japan
aneurysm indication
approval

In US, dissection andtrauma; in Japan,
dissection indication
approved Comp

Additional models,
RelayBranchclinical trials conductedJapan sales

EU, Latin America
launchAsia launch

Current model
Japan, EU sales

Quantum
global sales

FRED X

lete

Diabeloop Company
AID system
Improved model
collaboration,
Japan launch
regional expansion
considered
Cell processing business
Launch Quantum Flex
aims for double-digit
additional model
growthRelayPro

Major Topics• Group:(1) Announced “Terumo’s Purpose” to Enhance Joint Value Creation with Diverse Stakeholders(2) Three products of WEB, Dexcom G6, and Nagomi received 2022 Good Design Awards (WEB won Good Design Gold Award, which is the Minister of Economy Award)• C&V:

R2P (radial approach to peripheral) clinical trial results announced at US academic conference; results indicated efficacy including safety and early discharge• TMCS:

Product developed jointly with Kyowa Kirin “G-Lasta® subcutaneous injection 3.6mg BodyPod” approved for manufacture• TBCT:First plasma collections from donors completed using source plasma collection system “Rika”©TERUMO CORPORATION

13 / 25

Lastly, I will introduce the progress of this fiscal year’s pipeline
for our main products, and the major topics.
In Q2, the second item, FRED X, further expanded sales in the
United States.
The third item, RelayPro, sold well, and acquired approval forthe aortic dissection indication, which raises expectations forfurther sales expansion.
One major topic is that Terumo announced its Purpose on July 8.
Taking into view the next 10 years, the Terumo Purpose
expresses in specific terms the direction that Terumo intends togo, upon considering what contributions it can make to global
healthcare to meet the expectations of society.
In addition, the Company topics all indicate achievement ofimportant milestones in key themes of GS26. We look forward tofurther developments.
This concludes my explanation of our earnings. Thank you.

13

Reference©TERUMO CORPORATION

14 / 25

14

Revenue by Segment and Region©TERUMO CORPORATION

15 / 25

Quarterly Trend of Revenue and Operating Profit
Revenue: Q2 results were 19% growth YoY, highest-ever for a quarter. 4% growth QoQOperating profit: Q2 results were 14% decrease YoY, 16% decrease QoQ(100M JPY)

2,060
1,973
1,788

1,729

1,717

1,798
1,652

1,653

1,520

TBCT (Sales)
TBCT（売上）

1,313

TMCS (Sales)
TMCS（売上）
C&V (Sales)
C&V（売上）Consolidated (OP)
全社（営業利益）

181

362

304

238

FY20 FY21 FY22Q1

©TERUMO CORPORATION

296

334

255

FY20 FY21 FY22
1

Q2

286

231

FY20 FY21 FY221Q316 / 25

215

FY20 FY21 FY22
1

Q4

1

P&L (QoQ)(100M JPY)

Revenue

FY21 Q2(Jul-Sep)

Q3(Oct-Dec)

Q4(Jan-Mar)FY22 Q1(Apr-Jun)

Q2(Jul-Sep)

1,729

1,788

1,798

1,973

2,060

Gross Profit

920 (53.2%)

926 (51.8%)905 (50.3%)

1,016 (51.5%)

1,054 (51.1%)

SG&A Expenses

490 (28.4%)

507 (28.4%)

528 (29.4%)

566 (28.7%)605 (29.4%)

R&D Expenses

130 (7.5%)

128 (7.2%)

144 (8.0%)

141 (7.1%)

157 (7.6%)

Other Income andExpenses

-3

-5

-18

-6

-37

Operating Profit

296 (17.1%)

286 (16.0%)

215 (12.0%)304 (15.4%)

255 (12.4%)

Adjusted Operating
Profit339 (19.6%)

330 (18.5%)

273 (15.2%)

359 (18.2%)

345 (16.8%)

Quarterly

USD

110 JPY

114 JPY

116 JPY

130 JPY

138 JPY

Average
Rate

EUR

130 JPY

130 JPY

130 JPY

138 JPY

139 JPY©TERUMO CORPORATION

17 / 25

SG&A (QoQ)(100M JPY)
FY21 Q2(Jul-Sep)
Salaries & Wages
Ssales Promotion
Logistics
Depreciation
OthersSG & A total(%)

R & D total(%)

Q3(Oct-Dec)

Q4(Jan-Mar)FY22 Q1(Apr-Jun)

Q2(Jul-Sep)

249
40
39
50
112
490

255
44
39
51
118
507

256
45
41
54
132
528

298
46
44
56
123
566

312
44
47
59
142
605

(28.4%)(28.4%)(29.4%)(28.7%)(29.4%)

130

128

144

141

157

(7.5%)(7.2%)(8.0%)(7.1%)(7.6%)

Total

621

635

672

706

761

(%)

(35.9%)(35.5%)(37.3%)(35.8%)(37.0%)

Quarter

USD

110Yen114Yen116Yen130Yen138YenAverage ratio

EUR

130Yen130Yen130Yen138Yen139Yen©TERUMO CORPORATION

18 / 25

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

R&D Expenses（%）

SG&A Expenses Total（%）©TERUMO CORPORATION

FY 21 Q2 YTD

FY 22 Q2 YTD

+/-

498
70
77

610
90
91

112
20
14

Change Change
vs. FY21 excluding
Q2
FX impact

22%
28%
18%

6%
16%
7%

FY21 Q2

FY22 Q2+/-

Changevs. FY21
Q2

249
40
39

312
44
47

63
4
8

25%
10%
21%

98

115

17

17%

8%

50

59

9

18%

211
955

265
1,171

53
215

25%
23%

14%
9%

112
490

142
605

30
114

27%
23%

(27.7%)(29.0%)(28.4%)(29.4%)

26

20%

141

23%

247

297

(7.2%)(7.4%)

1,202

1,468

(34.9%)(36.4%)

50

266

20%

22%

8%

8%

130

157

(7.5%)(7.6%)

621

761(35.9%)(37.0%)

19 / 25

19

Adjusted Operating Profit amount(100M JPY)
FY 21 Q2 YTD FY 22 Q2 YTD

Operating Profit
Adjustment 1. Amortization of
acquired intangible assets
Adjustment 2. Non-recurring profit
or loss

Adjusted Operating Profit

FY21 Q2

FY22 Q2

659

560

296

255

79

95

40

49

4

49

3

40

741

704

339

345

<General examples of adjustment items>• Acquisition related cost
• Lawsuit settlement• Impairment loss
• Restructuring loss
• Nonlife insurance income• Loss on disaster• Other one-time profits & losses©TERUMO CORPORATION

Major items in Adjustment 2.
Non-recurring profit or loss

Restructuring loss
Loss on goodwill related to sale ofAB business
OthersFY 21 Q2
YTD
4FY 22 Q2
YTD
10

-

35

-

4

20 / 25

20

CAPEX, Depreciation and R&D Expenses(100M JPY)
FY22(100M JPY)

CAPEX

895

772

692

FY22
Q2 YTD
328

Depreciation
Amortization of
acquired intangible
assetsOthers

477

484

532

310

635

146

161

95

173

FY19

157
320

FY20

FY21

Guidance
900

CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not included in
Depreciation
338
371
215
462

FY22 Q2 YTD(32.8B JPY):
Continued investment mainly for TIS, Neurovascular, PS,
and Blood & Cell Technologies in production capacity, source plasma collection, R&D,
as well as IT infrastructure (SAP)FY22 guidance (90 B JPY): Executing appropriately in light of FY22 results
FY19
R&D Expenses©TERUMO CORPORATION

506

FY20
491

FY21
518

FY22
Q2 YTD
297

FY22
Guidance
580

21 / 25

21

Cash flow (Q2 YTD)

147
328

134
136

Cash at the endof FY21

CAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S©TERUMO CORPORATION

22 / 25

78

OthersStock buyback
expenditure

CAPEX

144

Dividends

Operating capital gains
and losses

Profitbeforetax
2,053

Depreciation
andamortization

546

140

Corporate
taxes, etc.

344

(100M JPY)

Investing & Financing CF-530

Operating CF
+603

2,126

Cash at the endof FY22 Q2

22Cash Flows
Investing & Financing CF (100M JPY)
-340

Operating CF
+370
40

17
200
144

4

Others144

Stock buyback
expenditure

CAPEX

Operating capital gains
and losses

Profitbeforetax

Depreciation
andamortization

250

Corporate
taxes, etc.

177

2,096

Cash at the endof FY22 Q1

CAPEX = C.i.P. record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S©TERUMO CORPORATION

23 / 25

2,126

Cash at the endof FY22 Q2

23

FY22 FX Impact Breakdown (Flow, Stock)
FX impact vs FY21 +3.4BJPY
Flow Annual +6.4B JPY: EUR, CNY appreciation positive impact
Rate (JPY)EUR
CNY

FY21 Q2 YTD
FY22 Q2 YTD
Variati
Average rate during Average rate duringonperiodperiod
131
139
8
17.0

19.9

2.9

Stock Annual -3.0B JPY: FX impact from elimination of unrealized profit on inventory
assets• Rapid JPY depreciation in September, expansion of variation between average rate and quarter-end rate
resulted in negative impact
FY22 Q2 YTD
FY22 End
VariatiRate (JPY) Average rate during
Septemberonperiod
USD
134
145
11
EUR
©TERUMO CORPORATION

139

142
24 / 254Foreign Exchange Sensitivity
Annual inpact of 1 JPY depreciation(100M JPY)

USD

EUR

CNY

Revenue20

938

Adjusted Operating Profit

1

5

16

<Reference> Impact when JPY depreciation 10%
North
America
Adjusted Operating Profit©TERUMO CORPORATION

7EuropeLatin
America EUR Zone Others
1074

25 / 25

13

CNY
31

Asia
Others36

26