Financial Results for the Second Quarterof Fiscal Year Ending March 31, 2024 (FY2023)

November 14, 2023

Naoki Muto

Chief Accounting and Financial Officer
Terumo Corporation

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 / 11Highlights
Revenue
Highest-ever result for a half
C&V and TBCT grew in double digits to drive the Group overall

Operating profit
Highest-ever result for a half
Profitability improvement (price policy and cost reduction) on schedule

Shareholder return
Will execute 20B JPY share repurchase this fiscal year

©TERUMO CORPORATION

3 / 11P&L
Revenue: Strong global demand continued; drivers TIS, blood center business, Vascular Graftgrew in double digits
Operating profit: One-time items and expected adjusted OP progress led to double-digit increase
100M JPYRevenue
Gross Profit

FY22 Q2 YTD

FY23 Q2 YTD Change

4,033
2,070

4,439
2,283（%）(51.3%)(51.4%)

1,171

1,315（%）(29.0%)(29.6%)

297

318（%）(7.4%)(7.2%)-4256015665（%）(13.9%)(15.0%)

704

756

（%）

(17.5%)(17.0%)

546

664（%）(13.5%)(15.0%)

403

501

SG&A Expenses
R&D Expenses

Other Income and Expenses
Operating Profit
Adjusted Operating Profit
Profit before Tax
Profit for the Year

10%
10%
12%
7%
19%
7%
22%
24%

6%
6%
8%
3%

15%
4%

FY22 Q2

FY23 Q2

2,060
1,054

2,286
1,185

(51.1%)(51.8%)

605

664(29.4%)(29.0%)

157

164(7.6%)(7.2%)

-37
255

12368

(12.4%)(16.1%)

345

411(16.8%)(18.0%)

250

366(12.1%)(16.0%)

179275(12.0%)(8.7%)
138JPY/139JPY 145JPY/157JPY(10.0%)(11.3%)（%）
Average exchange rate (USD/EUR) 134JPY/139JPY 141JPY/153JPY©TERUMO CORPORATION

Change excluding
FX impact

4 / 11

Change
11%
12%
10%
5%
44%
19%
47%
54%

OP Variance Analysis (Q2): Less inflation impact, profitability improvement progress(100M JPY)

G/P
increment
bysalesincrease

Grossmargin

Price+18

Reimbursement
price

SG&A
R&D
increase increase

G/P increment by sales increase:
TIS, Neuro led the driver C&V

FX

Gross margin:
Cost-reduction absorbed inflation impact+7

Price:Global promotion of price revision
SG&A increase:
Increased sales force for expansion oftherapeutic devices sales in the US
FX:+2.6B JPY flow impact; slight stock impact

FY22 Q2 FY22 Q2
OP
Adj. OP©TERUMO CORPORATIONFY23 Q2 FY23 Q2
Adj. OPOP

5 / 11

OP Variance Analysis (Q2 YTD): As planned in all areas(100M JPY)
G/P increment by sales increase:
Drivers were C&V, TBCT
Price

Gross margin:
Absorbed some of inflation increase that began
2H last fiscal year through cost-reduction andmix improvement+31

GrossG/Pmargin Reimbur- SG&A
increment
R&D
sement increase
byincreasepricesales+14
increase

FXPrice:
Global promotion of price revision
SG&A increase:
Increased sales force for expansion oftherapeutic devices sales in the US
FX:+4.0B JPY flow impact partly absorbed by -1.5B
JPY in stock impact

FY22
FY22
Q2 YTD Q2 YTD
OP
Adj. OP©TERUMO CORPORATION

FY23
FY23
Q2 YTD Q2 YTD
Adj. OPOP

6 / 11

Gross Margin: Substantial 2H improvement expected
FY23 guidance OP variance analysis

Quarterly breakdown by itemDetails, 2H expectation(100M JPY)

Gross Margin(5.8B JPY/Year)©TERUMO CORPORATION• Improvement of all items
accelerates in 2H• Fall-off of temporary costs fromQ4 of last fiscal year

Inflation• Ease in 2H• Start global tender for freight cost

Profitability
improvement• Production transfer, operations
improvement• Further results in 2H

Mix
improvement,others• 2H sales increase in high-margin
businesses like PS• Sizable YoY improvement in Q4

7 / 11Q1 Q2 Q3 Q4a ResultExpectation

Revenue by Region: Therapeutic devices strong in Americas, EU; Emerging drove high growth rate
C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies,
TIS: Interventional Systems, Neuro: Neurovascular

FY23 Q2 YTDRegionalbreakdown

Q2 YTD

23%

20%
9%
13%

( ) FX Neutral

Q2

1,063
1,381
1,537

519

Japan

1,024
1,012
1,011

532
514
536

Europe

683
772
896

338
386
452

16%
(6%)

China

301
384
411

147
190
211

7%
(8%)

Asia andOthers

374
484
585

Americas35%

FY23 Q2 YTDYoY change

Revenue (100M JPY)©TERUMO CORPORATION

FY21FY22FY23719797

11%(6%)-0%193251290

21%(16%)8 / 11

Comments
Americas: Neuro of C&V grew in double digits;
Vascular Graft grew over 30%
Japan: TIS, Vascular Graft of C&V weredrivers; TBCT trended steadily. TMCS sales
down due to sell-off of nutrition business,
return to normal of thermometer demand
Europe: TIS of C&V grew in double digits;
Neuro and Vascular Graft drove with double
digit growth
China: TIS, blood center business were drivers.
Slight impact by decrease in number ofprocedures with anti-corruption campaign.
Neuro: distributor inventory adjustment impact
eased in Q2. TIS access products subject tovolume-based procurement (VBP) starting inDec. or later
Asia and Others: Sizable sales increase due toTBCT blood center business tender timing.
C&V, TMCS also grew in double digits

C&V:Americas, EU drove continuing strong sales; profit progress as planned（100M JPY）

(C&V: Cardiac and Vascular, TIS: Interventional Systems)

Q2 YTD

Q2Comments( ) FX Neutral

2,354

TIS:

2,657

Double-digit growth outside Japan; EU and China
were drivers. Access products subject to volumebased procurement (VBP) in China starting in Dec.
or later+186

Neurovascular:

Double-digit growth in US, EU to continue
strength. China distributor inventory adjustment
impact eased in Q2+34

Cardiovascular:

Japan hardware demand returned to normal, but
US, Asia sales stayed strong+40

VascularGraft:

US, EU were drivers. New hybrid product sales
trended strongly. Stent graft continued sales
expansion+43

Profit：Sales increase and profitability improvement pushed
back inflation impact. Increased sales force forexpansion of therapeutic devices sales in the US1,943
Revenue

13%(8%)

948

1,186

1,351
14%

508

529

Adjusted
Operating
ProfitProfit%576
9%(4%)

214

249

308
24%

FY21

FY22

FY23

FY21

FY22

FY2326%

22%

22%

23%

21%23%©TERUMO CORPORATION

Q2 YTDYoY

9 / 11

Increased sales and profit despite impact of Nutrition business divestiture,
return to normal of thermometers

TMCS:（100M JPY）

(TMCS: Medical Care Solutions)

Q2 YTD
920

938

Revenue

Q2Comments( ) FX Neutral

940

0%
(-1%)

482

478

503

5%

Adjusted
Operating
ProfitProfit%

134
8183

702%
(1%)

375549%

FY21

FY22

FY23FY21FY22

FY2315%9%9%15%8%11%©TERUMO CORPORATION

HCS
Hospital CareSolutions:

In Japan: Sell-off of Nutrition businessabsorbed by reimbursement priceimprovement, infusion set/pump strength.
Asia, Latin America drove outside JapanLCSLife CareSolutions:

Thermometer demand returned to normal.
Japan blood glucose self-measurement
product sales down due to stiffer
competition

PS
PharmaceuticalSolutions:

Sales impacted in all markets by delivery
timing change. Steady progress inproduction investment toward mid- to longterm growthProfit:

Price policy effects absorbed the negative
impacts of Japan power cost inflation thatbegan 2H last fiscal year and temporary
product mix issues

10 / 11

Q2 YTD
YoY+21-13-6

TBCT:

Strong blood center business drove large profit increase（100M JPY）

(TBCT: Blood and Cell Technologies)

Q2 YTD

Q2Comments( ) FX Neutral

740
Revenue

841

582
14%
(9%)

299

395

432

Blood Center
Solutions:

Earlier timing of Asia tenders increased
sales. Whole blood collection productsales strong in Latin America, EU+88

TherapeuticSolutions:

Cell collection demand expanded in US.
Therapeutic apheresis for hospitals strongin Asia+27

Cell Therapy
Technologies:

Minus YoY due to sale of a business.
Cell therapy investment expansion led tosteady trend in cell processing systemsales

-149%

11891
Adjusted
OperatingProfit

Profit%10617%(21%)

5855

48-13%

FY21

FY22

FY23

FY21

FY22

FY2320%

12%

13%

19%

14%

11%

©TERUMO CORPORATION

Q2 YTD
YoYProfit:

11 / 11Large profit increase through sales growth.
Continued positive impact from price revision
and Costa Rica production transferReference©TERUMO CORPORATION

12 / 11

Revenue by Segment and Region©TERUMO CORPORATION

13 / 11

Quarterly Revenue Trend
FY23 Q2: +11% vs. FY22 Q2, +6% vs. FY23 Q1(100M JPY)
2,500

2,000

1,500
TBCTTMCS

1,000

C&V

5000

FY19 FY20 FY21 FY22 FY23Q1©TERUMO CORPORATION

FY19 FY20 FY21 FY22 FY23FY19 FY20 FY21 FY22 FY23FY19 FY20 FY21 FY22 FY23X

Q2

Q3Q4Q514 / 11

Profitability Improvement Progress
1H progress

1 Price policy

1H progress

2 VC2 impact

12.0B JPY Q23.6B JPY Q22H

2H
2H

2H
VC2: Group-wide production and SG&A cost-reduction project

1Hresults

2H

expectation©TERUMO CORPORATION

Reimbursement price revision
positive impact, along withglobal price policy revision

Costa Rica transfer
cost reduction impact

Further impact through automation,

Expand to more products, regions
continuous impact expected

optimization and operations
improvement in Japan factories

15 / 11

P&L (QoQ)(100M JPY)

FY22 Q2

Q3

Q4(Jul-Sep)(Oct-Dec)(Jan-Mar)

Revenue

2,060

2,147

2,022

Gross Profit

1,054 (51.1%)

1,114 (51.9%)

SG&A Expenses

605 (29.4%)

R&D Expenses

FY23 Q1

Q2(Apr-Jun)(Jul-Sep)

2,153

2,286

990 (49.0%)

1,098 (51.0%)

1,185 (51.8%)615 (28.6%)

597 (29.5%)

651 (30.2%)664 (29.0%)

157 (7.6%)

159 (7.4%)

160 (7.9%)

154 (7.2%)

164 (7.2%)

Other Income and Expenses

-37

35

Operating Profit

255 (12.4%)375 (17.5%)

238 (11.8%)296 (13.8%)368 (16.1%)

Adjusted Operating Profit

345 (16.8%)

392 (18.2%)

284 (14.1%)

345 (16.0%)

411 (18.0%)

138JPY
139JPY

142JPY
144JPY132JPY
142JPY137JPY
150JPY

145JPY
157JPY

Quarterly
Average Rate©TERUMO CORPORATION

USD
EUR

16 / 115312

SG&A (QoQ)(100M JPY)

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation and Amortization
OthersSG&A Expenses(%)(%)

Q4(Jan-Mar)

FY23 Q1(Apr-Jun)

Q2(Jul-Sep)

312
44
4759
142
605

316
52
49
60
138615

307
45
44
58
143597

336
49
47
58
161
651

349
44
4661
164
664

(29.4%)(28.6%)(29.5%)(30.2%)(29.0%)(7.6%)(7.4%)(7.9%)(7.2%)(7.2%)(37.0%)(36.0%)(37.4%)(37.4%)(36.2%)

761

Total(%)©TERUMO CORPORATION

Q3(Oct-Dec)

157

R&D Expenses

Quarterly Average Rate

FY22 Q2(Jul-Sep)

159
774

160
757

154
805

164
828

USD

138JPY

142JPY132JPY

137JPY

145JPY

EUR

139JPY

144JPY

142JPY

150JPY

157JPY

17 / 11

SG&A (YoY)(100M JPY)
FY23 Q2
YTD

YoY

YoY%

YoY%
excluding
FX impact

610
90
91

685
93
94

75
3
2

12%
3%
2%

115

119

4(%)

265
1,171(29.0%)325
1,315(29.6%)

R&D Expenses(%)

297(7.4%)

Total(%)

1,468(36.4%)

FY22 Q2YTD

Salaries & Wages
Sales Promotion
Logistical Costs
Depreciation andAmortization
OthersSG&A Expenses©TERUMO CORPORATION

FY22 Q2

FY23 Q2

YoY

YoY%

7%
-1%-1%

312
4447

349
44
46

37-0-1

12%
-0%
-0%

3%

0%

59

61

20%

60
144

23%
12%

18%
8%

142605(29.4%)

164
664(29.0%)

22
59

15%
10%

318(7.2%)

217%

3%

157(7.6%)

164(7.2%)

75%

1,633(36.8%)

165

11%

7%

761
(37.0%)

828(36.2%)

66

9%18 / 11Adjusted Operating Profit: Adjustment Items(100M JPY)

FY22 Q2YTDFY23 Q2
YTD704

FY22 Q2

FY23 Q2756345411-95-97-49-50

Adjustment 2. Non-recurring profit or loss

-496-408

Operating Profit

560665255368Adjusted Operating Profit

Adjustment 1. Amortization of
acquired intangible assets<General examples of adjustment items>• Acquisition related cost • Impairment loss

• Nonlife insurance income• Restructuring loss

• Other one-time profits & losses• Loss on disaster

Adjustment 2. Non-recurring profit or loss
Restructuring loss

FY22 Q2YTD

Goodwill amortization related to sale of part ofcell processing businessProfit from sale of Olympus Terumo Biomaterials stockOthers©TERUMO CORPORATION

19 / 11-10• Lawsuit settlement

FY23 Q2
YTD-7-35--4

13-CAPEX, Depreciation and Amortization, R&D Expenses(100M JPY)
FY20

FY21

FY22

CAPEX

772

692

758

Depreciation and Amortization
Amortization ofacquired intangible assets
Others

484

532

146
338

FY23 Q2FY23YTD(100MGuidanceJPY)
327

800

635

335

675

161

188

97

175

371

447

238

500

CAPEX = Construction in progress record basis, lease depreciation (IFRS16) is not included in Depreciation

FY23 Q2 YTD (32.7B JPY): Continued investment mainly for TIS, Neurovascular, Pharmaceutical Solutions,
TBCT in production capacity, Plasma Innovations, R&D as well as IT infrastructure (SAP). Investment onconstruction of a new plant building in the premises of the Kofu Factory to strengthen production system forCDMO (Contract Development and Manufacturing Organization) business etc.
FY23 Guidance ROE 8.5%, ROIC 7.0%

R&D Expenses©TERUMO CORPORATION

FY20FY21FY22

FY23 Q2YTDFY23Guidance491518616318650

20 / 11Cash Flows (Q2 YTD)
Investing & Financing CF-536

Operating CF+536

368

664

1,873

226

Incometaxes, etc.

Depreciationandamortization

270

Workingcapitalgains andlosses

327

CAPEX

Profitbefore tax

Cash at the endof FY22©TERUMO CORPORATION(100M JPY)

100

Redemptionof bonds

156

47

Dividends

OthersCAPEX = Construction in progress record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

21 / 11

1,873

Cash at the endof FY23 Q2

Cash Flows (Q2)
Investing & Financing CF-149

Operating CF+421(100M JPY)

51
188
Depreciation
andamortization

366

Incometaxes, etc.

82
Workingcapitalgains andlosses

191

42

CAPEX

Others156

1,601

Cash at the endof FY23 Q1©TERUMO CORPORATION

1,873

Profitbefore tax

CAPEX = Construction in progress record basis
Aligned with period-end account balance "Cash and cash equivalents" on B/S

22 / 11

Cash at the endof FY23 Q2

FY23 Q2 YTD FX Impact Breakdown (Flow, Stock)
FX impact vs. FY22 Q2 YTD +2.5B JPY
Flow +4.0B JPY: USD, EUR appreciation positive impactRate (JPY)FY22 Q2 YTD
Average Rate

FY23 Q2 YTD
Average Rate

Variation

USD

134

141

7EUR

139

153

15CNY

19.9

19.7-0.1

Stock -1.5B JPY: FX impact from elimination of unrealized profit on inventory assets• Rapid JPY depreciation in September, variation between average rate and quarter-end rate resulted in negative impact

Rate (JPY)FY22End of March

FY23
End of September

Variation

USD

134

150

16EUR

146

158

12

©TERUMO CORPORATION

23 / 11Foreign Exchange Sensitivity
Annual impact of 1 JPY depreciation (Flow)(100M JPY)

USD

EUR

CNY

Revenue221139Adjusted Operating Profit

0523USD

EUR

CNY-2.5-0.6-2.0

Impact of 1 JPY depreciation (Stock)
Adjusted Operating Profit©TERUMO CORPORATION

24 / 11