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Terumo Corporation Dec 12, 2016
Corporate Strategy
Toshihiko Osada General Manager, Strategic Planning Department
2

1/10 Terumo Corporation Dec 12, 2016
Outlook: Medtech Industry Global medtech market: Forecast to grow at a CAGR of 5-6% for the next 10 years, with market size of 60 trillion JPY
Market Size (Trillion Yen)
4
1
10
5
16
7
3
2
0.5
2016 2025
% to market at 2025
Expected Growth % Environment changes
40%
17%
6%
2%
4.9%
4.7%
8% 9.9%
3.2%
9.1%
Increase in demand, focus on efficiency
Growth with tiers
Tighter regulation, intensified competition
Aging population, fiscal constraints
Healthcare as growth strategy for the economy
Source: Espicom, IMF, Statistics of Production by Pharmaceutical Industry, Terumo analysis
24

Healthcare Reform
Environment Change Healthcare Reform
Financial pressure Control of healthcare expenditure,
increased price pressure Emphasis on value and efficiency
Technological advancements Digital technology, new entrants
from other industries Regenerative medicine and
diagnostic technologies
Quantify value Improve efficiency in
hospital management
Increased healthcare demand Aging society Chronic diseases
Align within and across hospitals
Improve diagnostic and service efficacy
Integrated healthcare
Volume to value

Turn to Industry Consolidation as a Growth Opportunity
Global Trend Growth Opportunities
Concentrated, oligopolized mega-markets
Greater opportunities in the medium-scale segments
Divestiture of business through mega-mergers Potential M&A opportunities
Mega-competitors focused on therapeutic products bundling
Provide comprehensive treatment process solutions

Terumo Strategy: Win in Selected Strategic Markets Offer specialized and superior products
Technologies to develop cutting-edge products Create and expand Must Have
Interventional access products and devices for pharma companies
Competitive Advantage
Select growing segments and segments where Terumo owns a competitive advantage
Concentrate on interventional, neurovascular, D&D, and therapeutic apheresis
Strategy

Terumo Strategy: Offer Comprehensive Value in Japan Deliver a diversified product portfolio
Collaborative effort of engineering, production and sales Wide range of access to Japans healthcare needs Established distribution network
Leverage leading position and pursue growth opportunities Strategy

Terumo Strategy: Accelerate Innovation Collaborative effort between in-house engineering and open Innovation
Globally spread innovation centers Wide range of core technologies such as coating and
microfabrication Shift to the new way of engineering (Biodesign, etc.)
Strategy Contribute to future of healthcare with significant social impact
Advance core technologies and gain new technologies

Mid- to Long-term Growth Strategy
Offer Comprehensive Value in Japan
Accelerate Innovation
Select growing segments and segments where Terumo owns a competitive advantage
Leverage the leading position and pursue growth opportunities
Win in Selected Strategic Market
Contribute to future of healthcare with significant social impact

Growth by Transforming Portfolio and Globalizing
Business Sales Breakdown
Regional Sales Breakdown
Cardiac and Vascular 55%
General Hospital 27%
Blood Management 18%
FY05 FY15 FY21
49%
31%
20%
36%
57%
7%
36%
64% 60%
40%
Japan 30%
Outside Japan 70%
Plan FX rate: USD=105 JPU, EUR=115 JPY
Graph1
2586.008587422
1613.5984672095
1050.4294456823
Sheet1
C&V2,58649%
BM1,61431%
GH1,05020%
5250.0365003138
Graph1
889.3590716844
1411.2438006557
169.8838789111
Sheet1
C&V88936%
BM1411.243800655757%
GH1707%
2470.4867512513
Graph1
64
36
Sheet1
overseas64
Domestic36
Graph1
40
60
Sheet1
overseas40
Domestic60

Achieve Profitable and Sustainable Growth Management Indicators for the next 5 years
Growth Profitability Efficiency
High single-digit Growth
Double-digit Growth
Adjusted EPS** 270 300 Yen by FY21
*Adjusted operating income (IFRS) **Adjusted items: Intangible asset derived from acquisition, one time acquisition expense, impairment, gain/ loss from sales of stocks and others *** Excluding foreign currency translation adjustment balance related to the assets from acquisition included in net assets.
Faster revenue growth than market growth
Faster profit* growth than revenue growth
Maintain ROE 10%+***
Plan FX rate: USD=105 JPY, EUR=115 JPY

Cash Allocation
CAPEX
Dividend
M&As and shareholder returns
200 - 250 B JPY
100- 150 B JPY
200+ B JPY Financial arrangement
Accumulated Operating Cash Flow
(FY17-21)
500 - 600 B JPY

Terumo Corporation

Terumo Corporation Dec 12, 2016
Disclaimer
The information that Terumo discloses and 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 actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of the competition. The market share information in this presentation is partly derived from our own independent research.
1Outlook: Medtech IndustryHealthcare ReformTurn to Industry Consolidation as a Growth OpportunityTerumo Strategy: Win in Selected Strategic MarketsTerumo Strategy: Offer Comprehensive Value in JapanTerumo Strategy: Accelerate InnovationMid- to Long-term Growth StrategyGrowth by Transforming Portfolio and GlobalizingAchieve Profitable and Sustainable GrowthCash Allocation 12 13

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