Terumo CorporationMay 9, 2018

Q&A Session at the Financial Results Briefingfor the Fiscal Year Ended March 31, 2018
Outlined below are the principal Q&As from the financial results briefing of May 9, 2018. Certain
details have been expanded or modified to provide readers with a deeper understanding of Terumo
Corporation’s performance and activities.

Q1: Profitability in the Q4 of FY2017 seems low compared to the first three quarters of FY2017.
What caused this aforementioned low performance?
A1: One cause of the lower gross profit margin can be attributed to temporary costs incurred in theQ4 of FY2017 pertaining to the transfer of the production lines of Blood Management
Company from a factory in US to one in Vietnam. Terumo group as a whole tends to spend
more SG&A incl. R&D expenses than other quarters. An additional one-off cause can be
attributed to the realization of temporary costs in FY2017 based on the contract made withSequent Medical, Inc. which Terumo acquired, since there is a probability of the application for
FDA’s approval of the WEB™ System developed by aforementioned acquired company beingearlier than initially anticipated.

Q2: FY2018 guidance of Cardiac and Vascular Company is expected to rise by 5% year-on-year interms of revenue and adjusted operating profit. Even w/ impacts of reimbursement revision in
Japan and FX taken into account, shouldn’t we see the guidance rather conservative?
A2: The negative impact from revisions to NHI reimbursement prices in Japan and from FX will
mostly affect Cardiac and Vascular Company. Furthermore, revenue rose in FY2017 owing totemporary factors such as the impact from the acquisition of the Angio-Seal, vascular closure
device, revenue growth by resumed reshipment of heart-lung machine, and the impact from theacquisition of Bolton Medical. However, these aforementioned factors will dissipate in FY2018.
We see the TIS and neurovascular businesses continuing their robust performance.

Q3: With regards to the business environment in FY2018, do you expect any changes to the healthy
U.S. market as well as the status of the operation at the Puerto Rico factory producing theAngio-Seal vascular closure devices?
A3: For the mid- to long-term trend, the U.S. market is facing increasingly severe pressure on prices,along with demand for efficient medical economy. However, we do not see any major changes
in FY2018. Production in Puerto Rico is growing robustly. The device usage/penetration rate in
the market and our market share expanded at upper single-digit growth rate in FY2017, and we1
The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.

Terumo CorporationMay 9, 2018
will continue the growth in FY2018.

Q4: How do you view the impact from new drug-eluting stents (DES) and blood glucose monitors
by other companies?
A4: We expect a temporary impact after the launch of DES products by other companies, but weplan to launch “Ultimaster Tansei”, an upgraded version of the current Ultimaster, in the second
half of this fiscal year. As for the product quality, we believe the Tansei has some superior
points compared to other products. By promoting these advantages, we will retain our positionin Japan. As for blood glucose monitors, we had paid attention if insurance coverage for flash
glucose monitoring (FGM) was realized. However, since the coverage only extends to technicalfees, not to medical supplies, we see the impact on the SMBG market as being limited at thepresent time. In the mid- to long-term, however, we foresee the expanded use of FGM andcontinuous glucose monitoring (CGM), and the SMBG market is expected to be downsized to acertain degree. We will seek growth as a total solutions provider with a combination of needles,
syringes, SMBG, insulin pumps and CGM by leveraging our acquisition of exclusive CGM
distribution rights in Japan from U.S.-based Dexcom, Inc.

Q5: You mentioned a desire to increase R&D expenses for the General Hospital Company, but inwhat areas exactly will you add the expenses? Will the General Hospital Company's R&D
expenses remain higher than usual?
A5: We expect higher R&D expenses on DM products and alliance business. As for outlook from
FY2019 and beyond, we don’t have any information to share for now.

Q6: You made three big acquisitions in FY2016 and it seems the integration is proceeding smoothly,
but for the time being are you going to hold off on acquisitions and focus on strengthening
operations? What is your stance on future M&A?
A6: Our stance remains unchanged. As for acquisition targets, we always consider a wide range ofpossibilities and make rational decisions.

Q7: With regards to the initiative to return to the growth trajectory in Japanese market within yourmid- to long-term growth strategy, you mentioned preparing a stronger product lineup by
FY2020, but what are you seeking to achieve in terms of revenue growth?
A7: On a single fiscal year basis, factors such as the impact from revisions to NHI reimbursement
prices affects revenue growth, but we would like to grow sales by around 5% a year on average.

2The information contained in this report does not constitute an inducement to engage in any investment activity related to Terumo. The opinions and projections contained inthis report are based on our assessments when the material was being prepared. The accuracy of this information cannot be guaranteed and the information may be subject tochange without notice. Please be advised that Terumo or any party providing this information will not accept any liability for any damages that result from the use of thisinformation.