Celebrating our 100th founding anniversary:
5-Year Growth Strategy with a 10-Year Vision
03 |General Hospital Company
Hikaru Samejima, President©TERUMO CORPORATION

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Safe Harbor for 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 thoseforecasts 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.
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 notintended to constitute an advertisement or medical advice.
Terumo Corporation
Investor Relations Dept.
E-mail: kouhou_terumo01@terumo.co.jp©TERUMO CORPORATION

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Vision for our 5-Year Growth Strategy

We provide patient centered solutions
that integrate our unique technologies,
contributing to the advancement ofhigh quality, innovative medical care.

©TERUMO CORPORATION

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Our Core Competencies
Diabetes (insulin delivery) solutions

Drug delivery solutions for pharmaceutical companies(DM & consumer health care)(Alliance)

IV drug delivery solutions

Peritoneal dialysis solutions(General hospital products)(Pharmaceutical)

Medicalsafety,efficiency
Drug delivery technologies
drug, device, ME, digital, cannula©TERUMO CORPORATION

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Looking Back on Current Mid- to Long-term Growth Strategy
Summary of current mid- to long-term growth strategy

Adjusted operating profit %Achievements
 Enhanced product portfolio by focusing on the diabetes treatment field

15.5%

16.8%

16.2%

 Acquired big projects from pharmaceutical companies

14.8% 14.7%

Revenue (B JPY)

Areas identified for further improvement:
 Handling price pressures from drug and reimbursement pricereductions, group purchasing, etc.

158

159

FY16

FY17

166

171

176

 Expanding business more globally Building a more optimal operational structure

GS26 Direction

 Shift DM and Alliance (pharmaceutical solutions) businesses to growthpillars
 Develop solutions by leveraging digital technologies, shifting to new
business models, and transforming Japan sales style Acquire a bridgehead for global business Optimize global operations©TERUMO CORPORATION

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FY18

FY19

FY20

FY21Est.

Key Shifts in Market
Market Dynamics

Strategic implications

Change in care paradigm

Shift value proposition to the whole care which covers hospitals
and home by focusing on patient-centric care

Maturation of Japan market

Accelerate global expansion to the US, China, other markets

Biopharmaceutical market
growth and changes in thedrug modality

Provide pharmaceutical companies with solutions
to maximize drug value through drug and devices
Build a lean operational structure

Price competition

Shift from selling tangible products to proposing solutions

Progress of digitalization

Develop new business solutions by utilizing data

©TERUMO CORPORATION

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5-Year Growth Strategy: General Hospital Company
Hospital Care
SolutionsLife Care
Solutions

Propose solutions to solve hospital management and front-line
issues by improving infection rate, equipment efficiency, etc.
Propose patient-centric and personalized solutions for chronic
diseases in outpatient and home care by combining vital monitoring
and treatment

Pharmaceutical

Offer pharmaceutical companies solutions that combine CDMO
and new type of devices which enhance drug efficiency

Global businessGo global with unique products and services through our own
sales network or B2B

Solutions

Solutions©TERUMO CORPORATION

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Hospital Care Solutions

Growth Opportunities through Business Solutionsin Hospital Business
Drug delivery solutions

Develop safe and efficient drug delivery solutions

Analyze infection related dataand propose solutions that improve infection
rates and hospital operations efficiency

Infection control products

Authentication byRFID

Drugdelivery

Infection control solutions

Utilization

Monitoring

Connecting to hospital
information system

Medicalrecord
Vital data

Visualizing the infection
risks based on data
Monitoring

e-prescribing©TERUMO CORPORATION

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Life Care Solutions

DM: Accelerate Personalization with Solution Offerings
that Leverage Outside Collaboration
 Glooko (US)Collaboration

Information Management System
for measurement data of SMBG,
pump, etc.

 MICIN (Japan)

 Diabeloop (France)

Joint development

Joint development

Digital Healthcare Support
System based on blood glucose,dietary, physical activity,medication, and other information

AIPhysician©TERUMO CORPORATION

Patient

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Automated Insulin Delivery System
calculates appropriate dose and links
CGM with pump

Our DX Strategy

Create new value through collaboration across divisions, diseases, and products

DX in hospitals

Develop safe and efficient drug delivery solutions

DX in prognostic / chronic fields

Increase product value and develop new markets
in chronic disease and post-care area
Physician

Linking data frompatients with chronic
diseases such as DM
Patientand PD

Examples: Improve efficiency and ensure safety of drug
administration and status management processes
 Data-driven optimization of dosing©TERUMO CORPORATION

Examples : Visualize data through a common database Realize digital therapeutics (DTx)10 / 17

Pharmaceutical Solutions

Business Expansion to Pharmaceutical Companies
Beyond GS26

Develop innovative thatGS26

Develop solutions that

As is

Develop solutions that improvemaximize drug effectiveness

improve drug effectivenessdrug safety and efficiency

Devices

Filling technology

Patch pumpConsulting

Intradermal
administration devices

PLAJEX etc.

Improve patient QOL
through continuous
administration

Enhance drug effectiveness©TERUMO CORPORATION

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Drug delivery solutions forcentral nervous system,
cardiovascular and oncology

Global business Solutions

Global expansion

Develop markets selectively in areas where we can leverage the strengths of each business

Hospital Care

Life Care

PharmaceuticalSoutheast Asia

EuropeGlobalpharmaceuticals

Solutions

Accelerate development ofinfusion systems (pumps, dataintegration, infusion sets)

North America

Strengthen sales of vascularaccess devices (B2B)©TERUMO CORPORATION

Solutions

Consider expansion of insulin
pumps, starting from Italy

ChinaExpand by taking advantageof changes in a sizable market

12 / 17Solutions

Strengthen global expansion of
CDMO: start and expand
commercial deployment of
PLAJEX by focusing on nichesegments

From General Hospital to Medical Care Solutions Company

Medical Care Solutions
Company

Hospital CareSolutions
DivisionLife CareSolutions
Division

PharmaceuticalSolutions
Division

Formerly known as• GHP Group• Pharma Group©TERUMO CORPORATION• DM・HC Group• Alliance
Division

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Operation strategy
Accelerate capacity expansion to handle contracted deals
Pharmaceutical Solutions

Main factory and products
Kofu Pharma
Factory

Investment results and plan

NESP80B JPY60

Yamaguchi
Factory(2016~)

HulioTeribone

4020

New factory(2025~)

Global Megadeals

0

FY07~11Basis©TERUMO CORPORATION

FY12~16

FY17~21▪Deal with economic security policies and enhance Japan production ofsyringe and infusion products▪Transform global optimal operation
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FY22~26

Product pipeline

Hospital CareSolutions

Life CareSolutions

PharmaceuticalSolutions©TERUMO CORPORATION

Short-to m​id-term​ pipeline (FY22~24)

Mid- to long-term pipeline (FY25~)••••

New PIVC
Next-generation Smart Pump
Expansion of CSTD lineup
New automatic peritoneal dialysis
machine•••New dialysis
Oncology supportive care products
Pharmaceutical nutrients•••

CGM-linked insulin patch pump
New type of BGM
Full model-changed thermometer••

Next-generation CGM
Digital therapeutics•

CDMO: Four new products• Continuous drug delivery by apatch pump (with Kyowa Kirin)•CDMO: Two new products• Oncology, vaccine

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CSTD: closed-system drug transfer device
BGM: Blood glucose monitoring
CGM: Continuous glucose monitoringRevenue and Profit Overview
Revenue

Adjusted Operating Profit

Mid single-digit growth

FY16FY21

 Pharmaceutical Solutions: Life Care Solutions:

Exceeding revenue growth

FY16FY26+ 30~40 B JPY+ 6~10 B JPY

FY21FY26

 Expand Pharmaceutical Solutions business Improve Pharmaceutical Solutions’ grossmargin through production increase Improve TMCS’s overall profitability byshifting portfolio mix→Adjusted operating profit %: 15%©TERUMO CORPORATION

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Toward the next decade

Beyond GS26

GS26
Create new value through digitalization▪ Expand DM product portfolio and start to develop a DMecosystem with partners▪ Initiate solution business to hospitals that utilizes data

Expand Pharmaceutical solution business▪ Expand CDMO pipeline▪ Get CDMO business from global pharma firms andbuild clinical evidence of new devices such as
intradermal needle

Accelerate digitalization and introduce new
business model▪ Monetize service business to hospitals▪ Improve treatment through drug infusion
optimization utilizing data
▪ Monetize from DM ecosystem▪ Develop patient-centric solutions for multiple
chronic diseases

Advance drug and device solutions tomaximize drug values▪ Develop new devices, initiate collaboration withpharma firms using those devices• Develop lean operation system• Establish new Japan sales style©TERUMO CORPORATION• Optimize global operations
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