Terumo : Financial Results for the Fiscal Year Ended March 31, 2023 (FY2022)(with note)

Financial Results for the Fiscal Year

Ended March 31, 2023 (FY2022)

May 15, 2023

Naoki Muto

Chief Accounting and Financial Officer

Terumo Corporation

Hello. I am the CAFO, Muto. I will explain our earnings results for the fiscal year ended March 31, 2023.

1

Safe Harbor for Forward-Looking Statements and Use of Document

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. Information about products (including products currently in development) which is included in this material is not intended to constitute an advertisement or medical advice.

©TERUMO CORPORATION

2 / 27

2

Highlights

FY22 Revenue

Highest-ever sales revenue and OP; profit for the period increased

US drove sales revenue growth; +5% group-wide (excluding FX)

Profit temporarily down in Q4; shortfall against Feb. guidance

FY23 guidance

Continued global growth, +6% sales revenue growth (excluding FX)

Expand high-margin products for double-digit OP growth

©TERUMO CORPORATION

3 / 27

First, the highlights of this earnings announcement.

The FY22 sales revenue and operating profit results were both our highest ever. We also secured an increase in profit for the year.

Sales revenue grew 5% when excluding FX impact, as strong global demand continued, led by the US market.

At the same time, profit was greatly affected throughout the year by inflation. Although we achieved an increase in profit, the most recent Q4 saw not only inflation impact, but also one-time downward factors, resulting in a shortfall against the guidance we announced in February.

Later I will explain these one-time factors from Q4 in more detail. Regarding the FY23 guidance:

Sales revenue will continue to grow globally, and we anticipate 6% growth (excluding FX) to exceed the growth of the previous year.

We will achieve improvement of operating profit in both amount

and rate, growing profit in a double-digit percentage and improving profitability through expansion of high-margin products, even more assertive pricing policies, and cost-reduction measures centered on manufacturing cost.

Next slide, please.

3

P&L

Revenue: Highest ever. Strong demand continued in C&V field, especially US

OP: Although highest ever, impact from raw materials price increases and one-time Q4 costs drove profitability down

100M JPY	FY 21 Q4 YTD	FY 22 Q4 YTD Change	Change excluding
FX impact
Revenue	7,033	8,202	17%	5%
Gross Profit	3,693	4,174	13%	2%
%	(52.5%)	(50.9%)
（ ）	1,991	2,383	20%
SG&A Expenses	7%
%	(28.3%)	(29.1%)
（ ）	518	616	19%
R&D Expenses	7%
%	(7.4%)	(7.5%)
（ ）	-25	-2	-
Other Income and Expenses	-
Operating Profit	1,160	1,173	1%	-5%
%	(16.5%)	(14.3%)
（ ）	1,344	1,380	3%
Adjusted Operating Profit	-6%
%	(19.1%)	(16.8%)
（ ）	1,145	1,161	1%
Profit before Tax
%	(16.3%)	(14.2%)
（ ）	888	893	1%
Profit for the Year
%	(12.6%)	(10.9%)
（ ）
Average exchange rate (USD/EUR)	112JPY/131JPY 135JPY/141JPY
©TERUMO CORPORATION			4 / 27

FY21 Q4	FY22 Q4	Change
1,798	2,022	12%
905	990	9%
(50.3%)	(49.0%)
528	597	13%
(29.4%)	(29.5%)
144	160	11%
(8.0%)	(7.9%)
-18	5	-
215	238	11%
(12.0%)	(11.8%)
273	284	4%
(15.2%)	(14.1%)
215	240	12%
(11.9%)	(11.9%)
171	191	12%

(9.5%) (9.5%) 116JPY/130JPY 132JPY/142JPY

Here are the P&L results.

Sales revenue exceeded 820 billion yen for the full year; our highest-ever result. Sales were driven by strong demand in the cardiovascular field globally, particularly the largest US market.

Operating profit was 117.3 billion yen; also our highest-ever result.

However, inflation and supply chain disruption required us to continually take measures throughout the year.

I will later explain how we plan to improve profitability in FY23. Next slide, please.

4