I am the CAFO, Muto. I will now explain the first‐half results for the fiscal year ending
March 2020.

1First, the overall results. Sales revenue grew positively in all three companies.
Among these, the TIS business of the Cardiac and Vascular Company achieved
double‐digit growth in all regions, driving the Terumo Group as a whole to 8%growth.
Adjusted Operating Profit grew a large 21%. This was due to strong growth inhigh‐margin products across the Group, in addition to Cardiac and VascularCompany expenses, especially sales promotions, occuring later than planned.
Profit before taxes grew 30% year‐on‐year, due to far less FX loss than the same
period of the previous year.
The first‐half results in sales revenue and all profit categories were their highest
ever.

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This is the variance analysis of adjusted operating profit, compared to the previous year.
"Profit increase through sales increment" is 18.5 billion yen, which is ahead of progress
toward our 33 billion yen annual guidance. However, this is a comparison with theprevious fiscal year, when we experienced a shipping delay. This heavily influenced our2nd quarter this fiscal year, so it represents an increase according to plan.
The 6 billion yen of gross profitability on sales came in above our annual guidance of 4.8billion yen. In addition to improvement in business mix driven by good Cardiac andVascular Company sales performance, we saw more positive effects from cost
reductions in production than expected; these contributed greatly to us exceeding ourfirst‐half guidance.
There was no price‐erosion impact from the reimbursement price revision, and progressof 5 billion yen was according to plan.
"European MDR expenses" occurred behind schedule. However, preparations for thenew regulations are progressing on schedule, and expenses are expected to catch up in
the second half. At 4.1 billion yen, "SG&A increase" progressed slower than the annualguidance of 12.5 billion yen, which also contributed to our exceeding first‐half guidance.
Some of this unused amount may possibly remain unused in the second half as well, due
to the good sales performance. However, we anticipate that most of the amount will beused in the second half. "R&D expense" was 2.8 billion yen, progressing according toplan against the annual guidance of 5.7 billion yen.
"FX impact" was approximately according to guidance.

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Next is revenue by region. In Japan, General Hospital maintained good
performance, while Cardiac and Vascular grew in double digits, for an overall
result of 5% growth.
Outside Japan, all regions grew in double digits when excluding FX impact.

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Next is revenue by company. Cardiac and Vascular Company was driven by
double‐digit growth in all regions of the TIS business, as well as the entire
Neurovascular business.
The General Hospital Company saw double‐digit growth in its Alliance Business,and did well overall.
Blood Management Company overcame heavily negative FX impact to return topositive growth, on the strength of good performance by blood center products
in developed markets, in addition to contributions from tenders won in emerging
markets.
I will give more detail by company in the next slides.

5Here is Cardiac and Vascular Company. Revenue was affected negatively by FX,
but still grew 12%.
The TIS business drove the entire company with double‐digit growth in all regions.
The Neurovascular business maintained good performance, especially in theUnited States, where the new WEB product has been introduced.
All businesses saw positive growth, including CV and Vascular graft.
In profit, the increase in sales of high‐profitability TIS and neurovascular products,
and improved product mix across the whole company, both contributed to astrong result. Some anticipated expenses not occurring during the first halfagainst a background of the good sales performance of TIS and Neurovascularbusinesses led to 37% year‐on‐year growth. In addition to the reimbursement
price revision impact, expenses that were delayed from the first half will have
impact in the second half, bringing results back toward annual guidance.

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The General Hospital Company saw progress according to plan in both sales andprofit.
Sales revenue progress was according to plan overall, with general hospital
products, pharmaceutical, and DM healthcare businesses maintaining goodperformance, despite impact from timing gap of some expected pharmaceuticalcompany orders in the Alliance business making it a slower 2nd quarter.
Profit came back to planned levels for the first half overall, after some expenses
occurred ahead of schedule in the 1st quarter. In addition, profitability improved
to the 15% of annual guidance.

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Next is Blood Management Company. Sales revenue returned to growth acrossthe company, with blood center products recovering in the 2nd quarter, after aslow 1st‐quarter start due to sales happening in the previous fiscal year, and withcontributions from tenders won in emerging markets.
Profit growth was negative due to heavy FX impacts, but profitability wasrestored according to plan.

8I will now summarize the causes for exceeding our first‐half guidance, and therisks for the second half.
First, the causes for exceeding our first‐half guidance are the ones I outlinedearlier.
Next, I will explain the risks for the second half. In sales, there could be negative
FX impact. And, there is some lack of clarity regarding to what degree demand
was front‐loaded to avoid the consumption tax hike that occurred in Japan.
In profit, if the expenses occur as I outlined earlier.
Therefore, we will not revise our annual guidance at this time, while still strivingto exceed that guidance by maintaining the momentum of the first half.

9Next, the major topics from the quarter.
Main topics for the Terumo Group include our decision to participate in two
United States venture funds. Through investment in funds and functional support
for startup companies, we will encourage new product development andcommercialization.
Regarding topics specific to companies: In the Alliance Business, the product incontract manufacturing for a pharmaceutical company received regulatory
approval in Japan, and production capacity will be increased, indicating
acceleration of business growth.

10This slide shows our new product pipeline for this fiscal year. Currently, productlaunches are on schedule.
This concludes my explanation. Thank you.

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