Terumo CorporationMay 8, 2014

Q&A at Financial Announcement for FYE Mar. 2014
The principal Q&A given during financial announcement for FYE Mar. 2014 held on May 8, 2014
are presented as follows. Certain details have been expanded or modified to provide readers with adeeper understanding of Terumo Corporation’s performance and activities.

Q1：In FY2014, what will drive the increase in profit for each company? How much ofprofit does Terumo expect to generate by the execution of announced roadmap
toward to FY16?
A1：In FY2014, for Cardiac & Vascular Company, we project a slight decrease in profit
due to Japan reimbursement price cut and increased R&D expenses. For BloodManagement Company, we also expect a slight decline in profit due to the increased
expenses to comply with a local regulation in Europe. For General HospitalCompany, despite the impact of Japan reimbursement price cut, an increase inprofit is projected as a whole since the plant productivity, which was a negative
factor in FY2013, will be improved. We will aim for 20% at segment operating
margin basis in FY2016.
Q2：In the mid-term plan, the company aimed for increase of 3% point in gross margin
from FY2012 to FY2016. According to the roadmap just announced, operating
margin is projected from a current 17% to 20% in FY2016. What level of additionalgross margin improvement does the company expect to achieve the operating
margin goal?
A2：In the light of FY2013 performance, we judged that it will be difficult to achieve theprojected sales and profit in mid-term plan under such severe environment. On thisunderstanding, we revisited and decided to target operating margin (beforeamortization) of 20% by FY2016. A difference from previously announced mid-termplan is that this time we will proceed with taking inventory of each business /region profitability to transform business portfolio. This will cause us to book some
impairment loss in FY2013 and FY2014.
Q3：What kind of observations did TCVS receive from FDA? Including additional
investment cost of 3 BJPY in FY2014, the accumulated amount of investment will
be around 22 BJPY. What makes Terumo continue the large investment in TCVS
1Among 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 on 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.

Terumo Corporation
May 8, 2014which annual sales is about 30 BJPY?
A3：FDA informed TCVS that it needs to build up solid track record of newly establishedsystem execution and collect validation data of a certain manufacturing process.
Meeting FDA’s requirements is essential condition for the company which conducts
a business in U.S. Even if the investment is required, we will firmly bring off thework.
Q4：Regarding “taking inventory of each business / region profitability”, please share us
more specific of your consideration? Is any planned write-off of business asset
incorporated into FY2014 guidance?
A4：In FY2013, we impaired the assets of part of CV business and manufacturing
facility for infusion solution of General Hospital business. Certain impairment ofassets are incorporated in FY2014 plan, however, ones for which final decision is
not made, are not incorporated.
Q5：What are the challenges for Terumo to cope with environment changes occurred inlast two years?
A5：Through our previous matrix management structure, where accountability forbusiness performance was not clear, we could not cope with global expansion ofbusiness. Therefore, we decided to shift to company-led management in April. Incompany-led management structure, dedicated plant and sales representative
clearly belong to a company.
Q6：What exactly occurred in “a delay of sales expansion for new General Hospitalproducts”?
A6：Since new IV catheter and infusion line are structurally complex to improve added
value, production yield for these products went down. We have already been putting
forth to efforts to lower manufacturing cost, such as facility improvement andproduction transfer to overseas factory. We expect these efforts to largely contributeto improve the profitability from FY2015. Regarding infusion solution for total
parenteral nutrition, we faced risen manufacturing cost due to low production yield
and Japan reimbursement price newly set lower than expected. Since profitability
expected to generate with such facility declined, we impaired the asset of it.
Q7：Would FY2014 guidance be possibly changed by new impairment of loss and others?
2
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 on 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.

Terumo CorporationMay 8, 2014
A7：If any impairment loss and others are identified and finally decided, we will sharethe information in accordance with disclosure standards.
Q8：Terumo underperformed its operating income guidance for the 4th consecutive year.
What does Terumo view the probability of operating income guidance in FY2014?
A8：We have awareness of the issue which we underachieved our guidance for the period.
Of course, we should accomplish our guidance of operating income for FY14
through securing foothold.
Q9：Is the company going to replace DES Nobori with new Ultimaster?
A9：Being different from competitors products, Nobori has been used mainly for a lesion
at ostium of left main coronary artery. On another front, we expect Ultimaster to be
used for wide range of lesion type, targeting larger segment of DES market. Sales ofNobori in FY2013 was about 15 BJPY. In FY2014, we will launch Ultimaster inEurope and Asia Pacific countries in June. We expect Nobori sales to be replaced byUltimaster, by 20-30% in FY2014 and around 50% in FY2015.
Q10：Terumo estimates its cash flows will improve from FY2014 because the amount ofCAPEX already hit a peak at FY2013. Does the company see the timing, whenCAPEX and depreciation gets balanced out, as a next M&A opportunity?
A10 ： We don’t think a next M&A timing relies on cash flow improvement bybalanced-out between CAPEX and depreciation. We will flexibly finance once wehave an opportunity.

3Among 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 on 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.