Terumo Corporation
August 4, 2016

Q&A Session at the Financial Results Briefingfor the First Quarter of the Fiscal Year Ending March 31, 2017
Outlined below are the principal Q&As from the financial results briefing of August 4, 2016.
Certain details have been expanded or modified to provide readers with a deeper understanding ofTerumo Corporation’s performance and activities.

Q1: In the Cardiac and Vascular Company, do you expect an increase in gross profit from thesecond quarter to the fourth quarter to remain the same level as that of in the first quarter?
Also, can you sustain the high profit margin posted in the first quarter?
A1: The Ultimaster, a drug-eluting stent, is a major profit contributor. However, in the third quarterthe product will have been on the Japanese market for a full year so we anticipate profit
contribution will narrow year-on-year. On the flip side, we expect profit growth of accessdevices to continue. We aim to sustain and improve our profit margin going forward.

Q2: The substantial improvement in profit margin in the Cardiac and Vascular Company came as asurprise, despite the hefty negative impact from foreign exchange rate fluctuations. Profit
contribution from sales of the Ultimaster was likely considerable. Has the company’s share in
the Japanese market changed? Also, you launched the Ultimaster in France in the first quarter.
According to your explanation, this is already contributing to sales growth. What factors werebehind the quick ramp up of sales?
A2: We believe our share in Japan is around 30%. In regard to the product launch in France, wehave been rolling out the Ultimaster in other countries in Europe since FY2014. In light of this,we were able to conduct sufficient preparations. In addition, as the selling price in France isrelatively high compared to other countries in Europe, we injected resources intensively into
marketing and sales activities. These efforts contributed to the successful launch in France.

Q3: When did you embark on full-fledged profit improvement through marketing activities? Will
you be able to continue to produce results further out? Your presentation basically centers on
the Interventional Systems (TIS) business. Will you also be able to deploy activities in theother businesses in the Cardiac and Vascular Company or the Blood Management Company?
A3: From FY2015, a companywide sales and profit calculation system was put in place enabling us
to grasp and analyze sales and profit by product in a timely manner. Each subsidiary and sales
office will be able to develop marketing strategies based on the data and we believe thisshould be contributing to an improvement in profit. At present, activities are mainly being
implemented in the TIS business. However, as we move forward, we aim to strengthen
1
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 Corporation
August 4, 2016activities in other businesses to further enhance our profit margin.

Q4: My question is about the increase in profit from the access devices. I believe Terumo
already had TRI access devices on the market. Why are your profit from these products
increasing so rapidly now?
A4: One catalyst is the shift to high-priced products in the access device business, including
Glidesheath Slender for TRI. In addition, marketing and sales activity costs are relatively
lower than therapeutic devices, including drug-eluting stent. As a result, the amount of profit
growth from sales increase is substantial.

Q5: In the Interventional Systems (TIS) business, what degree of progress have you made intransferring production to Vietnam? You explained that continuous efforts to reduce
production costs at domestic production sites have contributed to increased profit. Whatimprovement activities are being implemented at the Ashitaka factory?
A5: We manufacture products for the TIS business at five different factories: Ashitaka factory in
Shizuoka Prefecture, Terumo Yamaguchi in Yamaguchi Prefecture, and overseas factories inVietnam, the US, and Europe. Manufacturing is mainly carried out at the Ashitaka factory but
we are gradually transferring production to other factories. This is contributing to a reductionin production costs. We are repeatedly implementing detailed efforts to reduce production
costs at the Ashitaka factory, including automation and review of materials procurement.

Q6: What degree of profit improvement do you anticipate from the lifting of shipping restrictionsat Terumo Cardiovascular Systems’ Ann Arbor facility?
A6: In the first quarter, the improvement was around ¥600 million, and we expect to see a benefitof roughly ¥3.0 billion for the full year.

Q7: Why didn’t you revise your FY2016 guidance? Do you expect brisk profit to offset negative
impact from an appreciation in the yen’s value against major currencies and from theacquisition of Sequent Medical, Inc.? Or did you maintain your guidance due to many
uncertain factors, including the yen’s appreciation?
A7: In the first quarter, our business trended steadily. However, at this stage, there are numerous
uncertainties, including progress in our sales and profit, foreign exchange trends, and the total
impact from the acquisition of Sequent Medical, Inc. At the end of this first half we would liketo calculate the impact of each uncertainty to sales and profit as accurately as possible in orderto determine whether we should revise our FY2016 guidance.
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.