#1Growth Strategy in Japan Terumo Corporation President and CEO Shinjiro Sato November 8, 2018 TERUMO#2Mid- to Long-term Growth Strategy Progressing Steadily Win in Selected Markets Offer Comprehen- sive Value in Japan Select growing segments and segments where Terumo owns a competitive advantage Interventional systems, neurovascular, alliance, therapeutic apheresis Leverage the leading position and pursue growth opportunities ✓ Launched Ultimaster Tansei in JP,EU, and Aisa Made an agreement on acquisition of Chinese DES company The WEB aneurysm embolization system supported by FDA committee ✓ Expanded investment in Terumo Yamaguchi D&D Progress of Growth strategy in Japanese market Accelerate Innovation Contribute to future of healthcare with significant social impact Advance core technologies and gain new technologies Inaugurated WW Inovation Center in California, US ✓ Expanded early-stage R&D base at West Coast, US R&D for WEB, Kanshas and AdSpray ✓ Commenced R&D for remote monitoring systems specified for chronic heart failure TERUMO Terumo Corporation 2018/11/8 1/13#3Revenue Growth in Japan for The Past Ten Years Nearly flat since FY2011 Trend of Revenue in Japan (Terumo) (billion yen) 200.0 150.0 100.0 50.0 0.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 TERUMO O Terumo Corporation 2018/11/8 2/13#4Japan Is The Biggest Market for Terumo Where Its Business Is General Hospital Centric FY17 Revenue by region FY17 Revenue by business. Blood Asia Japan 19% 32% Revenue % Europe by region 20% TERUMO Americas 29% Manage- ment 6% Cardiac and Vascular 28% Revenue % in Japan General Hospital 65% O Terumo Corporation 2018/11/8 3/13#5Profitability of General Hospital Has Recovered Adjusted operating margin for General Hospital Company 20% 15% 10% 5% 0% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Great timing for the company to refocus on its growth in JP TERUMO Terumo Corporation 2018/11/8 4/13#6Deploy Large-scale Products in Each Business Arena Utilize all assets incl. products, sales infrastructure, and corporate functions Lead the industry with differentiated products Provide solutions to new needs at the medical front Introduce successful outcomes of acquisition as well as overseas R&Ds to Japan Make full use of external technologies and B2B channel TERUMO O Terumo Corporation 2018/11/8 5/13#7Differentiated products Solution to new needs Lever OJP M&A and R&D External techs and B2B Utilize Digital Health in Intensive Care Sell Japan's only prescription-linked pump. ➤ Promote further medical safety and workflow efficiency through automated setup for administration ICU management Anesthesia management Smart Infusion System Automated prescription TERUMO transferring Automated recording Electronic medical records 0.30 0.2009,19 ERLIND Infusion pump TERUNO [1ディプリバン注・キット 500/50 Syringe pump 21.0 00.2 O Terumo Corporation 2018/11/8 6/13#8Entry into Therapeutic Arena of Diabetes Management Differentiated products Solution to new needs Lever OJP M&A and R&D External techs and B2B Own lineups of three types of devices, SMBG, CGM, and insulin pump Continuous Glucose Monitoring (CGM) DEXCOM G4 PLATINUM 90 mg/dl -400 350 300 250 200 150 100 50 12:00 6:00 12:00 6:00 Dexcom™ Dexcom G4 Insulin pump 1632 [レー れき MEDIS レード Blood glucose alert function gives optimized control for glucose levels MEDISAFE WITH™ Japan's first small-sized lightweight patch pump TERUMO O Terumo Corporation 2018/11/8 7/13#9Provide Pharmaceutical Solutions 3502 Pain managemant Enhance product lineup by adding Fentanyl injection Drug and Device 15分与すること アセトアミノフェン アセリオ® 静注液 1000mg バッグ 1001107/1000m テルモ株式会 東京都渋谷区開ヶ谷2丁目44番 75 10よりすること TERUMO 3502 50 25 APPROX Differentiated products Solution to new needs Lever OJP M&A and R&D External techs and B2B Acelio I.V. solution is the only such product in Japan Offer multimodal analgesia with combinations of different mechanisms of action Design and manufacturing optimized for biologics TERUMO O Terumo Corporation 2018/11/8 8/13#10Expand Therapeutic Devices for Intervention Differentiated products Solution to new needs Lever OJP M&A and R&D External techs and B2B Therapeutic devices for coronary intervention Therapeutic devices for neurovascular intervention CASPER RX Carotid Artery Stent Prevent Embolic Release Drug-eluting stent 麗 PTCA balloon Upgraded delivery performance 誠 SOFIA® Flow Plus Made it approachable to complex lesions Utilize synergy w/ imaging devices TERUMO PHIL FRED Flow Re-Direction Endoluminal Device PHIL Precipitating Hydrophobic Injectable Liquid Full lineup and entry into the rapidly growing ischemic stroke market O Terumo Corporation 2018/11/8 9/13#11Seek for Less Invasive Treatment in the Area of Surgery Differentiated products Solution to new needs Lever OJP M&A and R&D External techs and B2B Oxygenator CAPIOX OXYGENATORS 30 YEARS From the Pioneer of Hollow Fiber Oxygenations CAPIOX NX Stent graft for thoracic aortic aneurysm Reduced priming volume by 30% Adult oxygenator w/ world's lowest priming volume RELAYⓇ Precise deployment w/ superior comformity to curved aorta TERUMO O Terumo Corporation 2018/11/8 10/13#12Expand from Blood Center Business to Therapeutic Apheresis and Cell Therapy Differentiated products Solution to new needs Lever OJP M&A and R&D External techs and B2B Hematopoietic stem cell transplant Regenerative medicine systems Therakos UV treatment HEST Chronic GVHD* side-effect solution *One of complications caused by organ transplant Make the de facto standard of production technology in regenerative medicine and cell therapy TERUMO O Terumo Corporation 2018/11/8 11/13#13To Fully Utilize Overall Distinctive Strength in Japan IStrategically promote projects through "Scrum 2018" 1 Promote collaborative sales approaches across the businesses 2 Appeal for Terumo brand 3 Enhance corporate infrastructure (Regulatory affairs, etc.) + 4 Commence disease-oriented approach (Cancer, Foot care, Chronic heart failure, etc.) TERUMO O Terumo Corporation 2018/11/8 12/13#14IR Contact Terumo Corporation Corporate Communication (IR) Dept. E-mail: [email protected] 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 O Terumo Corporation 2018/11/8 13/13