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 of competition. 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 not intended toconstitute an advertisement or medical advice.

Terumo Corporation
May 16, 2022

Q&A Session at the Financial Results Briefing
for the Fiscal Year Ended March 31, 2022
Outlined below are the Q&As from the financial results briefing on May 12, 2022.

Questioner 1: First, as you mentioned in your explanation, you made various comments
regarding the recovery of the number of procedures performed. In looking at the current fiscal
year, there is Omicron and other factors, but basically a recovery trend can be seen throughout
the year, so is it correct to assume that there is not much to worry about?
Terumo: Thank you. Only in China, there is some concern, but globally, the number of procedures
has fully recovered. That is for the top line. As for the bottom line, the production adjustments wemade throughout the fiscal year to lower inventories to an appropriate level have been completed,
and we are now in the stage of switching to increased production. We are also looking forward to
future development in terms of creating margins.
Questioner 1: I understand. The second question is about what the president just explained,
source plasma at the Blood and Cell Technologies company.
I know it is difficult to discuss the details, but I understand that the Rika system has been approved
and will be rolled out to 300 centers for CSL from this period.
I understand that the equipment will not be part of your company's sales, but as to when therevenue actually will be accrued, and the amount, and so on. Sales in the blood business are strong
for this fiscal year, but profits are actually declining. Including costs, etc., in this area, should we
expect that the rollout of this business will not clearly show in the forecast until next fiscal year
or later, rather than during the current fiscal year? Could you please explain your image of thetiming and the amounts related to this?
Terumo: Thank you. We have been telling you about this timeline for a year now, and now that
we have finally received FDA certification, it appears that we will be able to make our firstrevenue in the first half of this fiscal year, as was our original goal.
However, the speed of the rollout will depend on how vividly can the rollout be launched at the
beginning. There are quite a few aspects of the rollout that will determine its speed and depend
on our ability to achieve the desired effect. Although we have made some assumptions, we would
like to discuss them in the actual results from the first half of the year and onward.

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 of competition. 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 not intended toconstitute an advertisement or medical advice.

Regarding margins, we are starting this project in GS26 with the effect of raising the current
margins in the Blood and Cell Technologies company. Rather than looking at expectations for thisfirst fiscal year, the greater theme for this year is to finish the rollout first. I know that the expected
effect of margin improvement will probably not be realized until next year or later. We haveincorporated some assumptions, but there are still some flexible areas there.
Questioner 1: TBCT margin which will decrease has a slight increase in cost of that plasma
business this fiscal year?
Terumo: Here, too, it is difficult to say. Our current assessment is that since fixed costs are rather
high in this business, it is difficult to improve margins until the next fiscal year or later.
Questioner 1: I understand. Thank you.
Questioner 2: I would like to ask about the fourth quarter, page six of the slides, and the analysisof changes in profit.
I would like you to explain this gross margin effect. I remember that, when you had minus 36 in
Q3, you explained that the 36 included distribution costs and material costs, and you explained
them separately at that time. It was down to 15 in this fourth quarter. Why? What happened
between the third and fourth quarters?
I also want to ask about the FY2022 forecast. The gross margin effect on slide 12 is positive 41.
We thought it would be a slight positive, but it is a fair-sized positive. It would be helpful if you
could break down and explain this area as well. This is my first question.
Terumo: Thank you. Let's start with the first point. The slide shows a YoY comparison, so if you
look at Q3, for example, the drop was drastic. There was a 54.9 rate of gross profit margin in Q3
of 2020 and 51.8 in Q3 this period, so that Q3 diagram was intended to explain the 3.1 drop. Sorry,
this is how the slides are, but I think it would be easier to understand if I spoke in terms of QoQ.
If we go by OP, the Q3 result is 16%, down four percentage points to 12%. Let me give you abrief idea of what this entails. There are three factors. The first is the stock of foreign exchange,
which we call "elimination of unrealized profit in inventories" which is 100 basis points.
The remaining 300 basis points occur in SG&A expenses below gross profit, which can be divided
into two major categories. The consumption rate of expenses always increases in Q4. The rate of
expenses to sales is exactly the same as that of last year's Q4. Why did this suddenly rise in Q4.
One is the aspect of seasonality and that's 150 basis points.
The remaining 150 basis points are one-time costs, and as I mentioned a little during Q3, we aretransferring production to Costa Rica in order to bring our production to a three-pole system. Its
one-time cost is included.

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 of competition. 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 not intended toconstitute an advertisement or medical advice.

Therefore, the four percentage-point drop from Q3 to Q4 is mostly due to one-time sales and the
sharp depreciation of the yen.
Four quarters from now, in Q1 FY2023, we expect to return to the Q3 level of at least 16%. Thisis the same, as is the “unrealized” stock, as the one-off related to production adjustments
mentioned earlier, and together they amount to 250 basis points, which is about 14.5. And since
there is no increase in costs in Q4, it will go up to around 16.
From that point forward, we are roughly looking at raising it above 16%, through the effect of thereversal of the production adjustment, and improvements as we go to product, as growth drivers
emerge, mainly in Cardiac and Vascular.
Questioner 2: Can you talk about logistics costs and raw material costs separately?
Terumo: If we look at the movement of inflation from Q3 to Q4, we said that it was less than
JPY3 billion in Q3. The biggest part then is the combination of raw materials and utilities, when
said according to each factor. Then there is freight, and finally labor costs. That is about theirorder of magnitude, too.
However, inflation isn’t particularly up or down until Q4, it's basically flat. So, I didn't mention
this in the current Q3 to Q4 change, but this is roughly JPY2.5 billion to JPY3 billion per quarter.
If this does not slow down at all in the current fiscal year, there will be an impact of JPY10 billion
to JPY12 billion, which is an impact of 150 basis points in terms of margin. I think it is probably
an approximation of the numbers that our overseas competitors have been quantifying recently.
However, rather than fully factoring this in, we expect this to decrease somewhat in the second
half of the year. We are working on the premise that if it does not decrease, we will work to
improve profitability through our own efforts.
Questioner 2: In essence, then, this JPY10 billion or JPY12 billion is included in this slide, butsince the gross margin effect is positive, we can expect an improvement in operation capacity tocompensate for that, and we can expect an improvement in mix, is that right?
Terumo: Yes.
Questioner 2: So that’s what it means. I understand. Secondly, regarding prices, your company
has usually had price revisions that led to the appearance of JPY4 to JPY5 billion, or even JPY6
billion at times, every year.
I have to admit that I was a bit surprised by the JPY2 billion this time. Drug-eluting stents andballoon catheters are coming down in price. Is some kind of price increase included in there?
Or are there other factors at play? For example, I believe it is your company where it rose quite abit for NHI price of infusion products, so that may have offset a lot of that. Could you please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 of competition. 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 not intended toconstitute an advertisement or medical advice.

explain the minus 20 in this price?
Terumo: Normally, as you just pointed out, the impact of the official government reimbursements
for drugs is JPY4 to JPY5 billion each year. The figure this time is JPY2 billion, but the decreaseis passed on here. That’s correct. We have obtained the prospect of passing on prices, especiallyoverseas, on a scale of about JPY2 billion.
Questioner 2: So that’s what it means. I understand. Thank you.
Questioner 3: The first one is about the overall performance of the company. I would like toknow the factors that led to the failure to meet your plan for the Q4 of the just-ended term.
Your guidance for this fiscal year is based on the assumption that the exchange rate will be
USD125 and EUR135, while other companies are assuming USD120 and EUR130, and you are
one of the few companies that have set the yen relatively weak. Looking at these numbers, it
seems to me that there is not much leeway in this guidance. Are there any items in the guidance
for this fiscal year where we can expect to see an upside?
Terumo: First of all, compared with the guidance for the just-ended fiscal year, sales topped about
JPY6 billion. As you pointed out, we did not achieve JPY4 billion in profit.
We believe that the main factor here was inflation. Regarding the impact of COVID-19, conditions
have remained virtually unaffected.
Regarding the exchange rate, I believe that many of the figures for JPY120 and JPY130 are from
earnings disclosures released much earlier in the year. Looking at the recent monthly average forApril, we see that the exchange rate was JPY126 and JPY137, so we believe that the exchange
rate is reasonable, although we will have to see what the future holds.
For potential, focus on the base cardiovascular operations. There is still growth opportunity, inthe form of reaping the benefits of this section, which is still a driver of growth. We believe that
this will take the form of pursuing upside potential, including new products. That is all.
Questioner 3: I'm sorry to repeat this, but in your guidance for this fiscal year, you have alreadyfactored in the effects of increased production and the resulting improvement in cardiovascular
operations and product mix. In addition, the impact of inflation is assumed to converge to someextent in the second half of the year, so what upside should we expect from the relatively favorable
factors you have already factored in?
Terumo: Regarding the upside, as I said, I think the main focus will be cardiovascular operations.
I think the upside potential lies in whether we can accelerate the launch of new products with acertain degree of speed and timing.

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 of competition. 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 not intended toconstitute an advertisement or medical advice.

Questioner 3: I understand. My second question concerns Rika, the plasma collection device.
First of all, I was wondering if you could disclose anything about collection efficiency and yield.
At this point, since most of the detailed specifications have not been disclosed, it is quite difficult
to verify the competitive advantage of the product compared to other companies' products or to
predicted sales. Could you please disclose your specs in this area, especially regarding yield?
Terumo: I guess it would be a nomogram. I cannot speak about it here at this stage. We have a
product that is currently under development, and we are waiting until we can talk to you about it.
Questioner 3: In the earnings call by Haemonetics Corporation the day before yesterday, they
had USD100 million in 2021 in CSL-related sales. In 2022, CSL has pledged USD88 million ofthat amount as a minimum guaranteed purchase. If we calculate this simply, it would mean thatyour company's CSL sales for the current fiscal year will be only about JPY2 billion to JPY3
billion. It that correct?
Terumo: Probably the denominator will also go up by 10% or so since it is last year. We are notable to know the numerator, but it’s unclear whether it was a global figure or not. I don't think our
figures can be simply subtracted from that number. As I answered in a question earlier, I believethat the ratio, or rather the speed of replacement, will change depending on the speed of start up,
so we want to do all that we can.
Questioner 3: I understand. Thank you.
Questioner 4: I'm sorry to be so detailed, but we were told that TIS’s sales in the Americas in the
fourth quarter were very strong, and that the Omicron variant effect was not so great, and thataccess products were good. We heard from some US companies that January and February werea bit affected. Should we assume that there is a temporary factor in this? Could you please explain
the outlook for the next fiscal year, ending March 2023, and beyond, including sustainability?
Terumo: That’s TIS North America. January was much lower than December due to Omicron.
The market recovered significantly in February and March, especially in March. This is because
the vascular closure device, which I mentioned briefly in Q3, is finally getting back on track, andthe part of the device that we had pulled back due to our own errors is making a comeback, so
QoQ is looking strong.
But the TIS QoQ performance is growing 3%. We estimate that it will be a little above ouroverseas rivals, and we evaluate that we are basically experiencing a recovery in the number ofprocedures, plus a small amount of recovery in VCD.

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 of competition. 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 not intended toconstitute an advertisement or medical advice.

Questioner 4: I understand. Secondly, please tell us about China.
You mentioned that you were a little concerned, but I would like to know the situation up to theend of March and, if you know, the situation in April and May, in terms of the number ofprocedures.
Also, if you have any updates on centralized purchasing, etc., please tell us about that as well.
Terumo: OK. There is no update on centralized purchasing. The biggest impact on us is the drugeluting stent, which has already run its course, so I think we are past the stage where profits will
decline YoY.
We are also concerned about the number of procedures, and have frequently asked those in thevarious locations about that, but so far there has been no major decline. Even if there were to be,
I would be relatively optimistic that recovery would be quick since we have already experienced
that several times.
Questioner 4: Thank you. Some US companies have started bidding for Neurovascular, I think it
was Stryker Corporation. I heard that they are starting to do so, but there has so far been no impact.
What do you think about that?
Terumo: Compared to drug-eluting stents, the impact of this also seems to be negligible, both interms of quantity and cost.
Questioner 4: I understand. Thank you.
Questioner 5: I have just one question.
CSL is a hot topic, and there are indications that they will open about 30 new so-called collection
centers in the US this year, which are additional to 300 centers in the previous year.
As mentioned earlier in relation to the rollout, the future competitiveness of CSL and plasma
derived therapy manufacturers will be directly affected by how much blood they are able to collect.
For them, there is a natural desire to use something that is fast and efficient. I understand thatsome plans have already been finalized in the contract with your company in this area.
Regarding the point you made about possible delays in the rollout, is it correct to say that you
mentioned such risks in terms of the supply chain, procurement of parts, and various otheraspects? Please tell us about this.
Terumo: Of course, I cannot speak for CSL's own plans. As you can imagine, we are proceedingwith such a large project by implementing a customized system. Naturally, we are aligned with
CSL's development plan in the US, and we have our own supply plan in place.

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 of competition. 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 not intended toconstitute an advertisement or medical advice.

This is a partnership that is based on the evaluation of our supply capacity, so I think theunderstanding you have just expressed is fine.
Questioner 5: I understand. In a new installation, of course, everything is more efficient, and ina sense, you can evaluate that system. Of course, you have to consider the lead time when you
say you are going to open a new facility. Is that understanding correct?
Terumo: As I mentioned earlier in my introduction of the system, this is a system that we provide
to our customers in order to enhance the overall competitiveness of their centers.
I'd like to see an overall evaluation and, as you mentioned, an increase in the number of donors,
or perhaps ease of use by other donors, or a shift in share again. As we aim to improve customers
productivity and competitiveness, I believe that our system improvements will be realized in sucha way.
Questioner 5: Thank you very much.
[END]