Terumo : IFRS Financial Results for the Fiscal Year Ended March 31, 2023

May 15, 2023

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2023

Terumo Corporation〔IFRS〕

Company name:	TERUMO CORPORATION
Listing:	Tokyo Stock Exchange
Securities code:	4543
URL:	https://www.terumo.com/
Representative:	Shinjiro Sato, President and CEO
Inquiries:	Kenichi Hata, General Manager, Investor Relations Dept.
Telephone:	[phone]

Scheduled date of annual general meeting of shareholders:	June 27, 2023
Scheduled date to file annual securities report:	June 28, 2023
Scheduled date to commence dividend payments:	June 28, 2023
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for Securities analysts, Institutional
	investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results (cumulative)					(Percentages indicate year-on-year changes.)
		Revenue			Operating profit	Profit before tax	Profit for the year	Profit attributable	Total
				comprehensive
				to owners of the
															parent		income
	Fiscal year ended	Millions of		%	Millions of	%	Millions of	%	Millions of		%	Millions of		%	Millions of		%
		yen				yen			yen		yen			yen			yen
	March 31, 2023	820,209		16.6		117,332	1.2		116,137	1.4	89,325		0.6	89,325		0.6	176,415		(1.1)
	March 31, 2022	703,303		14.6		115,960	17.9		114,501	18.0	88,813		15.0	88,813		14.9	178,394		54.1
		Basic earnings	Diluted earnings		Return on equity	Profit before tax per	Operating profit to
		attributable to owners
		per share			per share			total assets		revenue
						of the parent
	Fiscal year ended					Yen			Yen			%				%			%
	March 31, 2023			119.00		118.95			8.4				7.6			14.3
	March 31, 2022			117.45		117.38			9.5				8.1			16.5

(Note) Share of profit/(loss) of investments accounted for using the equity method March 2023: 171 million yen March 2022: 440 million yen

Adjusted operating profit March 2023: 138,025 million yen March 2022: 134,441 million yen

(2) Consolidated financial position

				Ratio of equity	Equity attributable to
	Total assets	Total equity	Equity attributable to	attributable to owners
	owners of the parent
			owners of the parent	of the parent to total	per share
				assets
As of	Millions of yen	Millions of yen	Millions of yen	%	(Yen)
March 31, 2023	1,602,225	1,111,063	1,111,063	69.3	1,492.15
March 31, 2022	1,473,693	1,012,313	1,012,313	68.7	1,338.46

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end of
	operating activities	investing activities	financing activities
	the year
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	117,536	(59,121)	(86,559)	187,322
March 31, 2022	141,467	(78,454)	(70,879)	205,251

2. Cash dividends

		Annual dividends per share				Ratio of
						Total dividends	Payout ratio	dividends to
	First	Second	Third	Fiscal
	Total	(total)	(consolidated)	net assets
	quarter-end	quarter-end	quarter-end	year-end
				(consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Fiscal year ended
March 31, 2022	－	16.00	－	18.00	34.00	25,714	28.9	2.8
March 31, 2023	－	19.00	－	21.00	40.00	29,946	33.6	2.8
Fiscal year ending
March 31, 2024	－	22.00	－	22.00	44.00		32.4
(Forecast)

3. Consolidated Forecast for the Fiscal Year Ending March, 2024 (From April 1, 2023 to March 31, 2024)

(Percentages indicate year-on-year changes.)

			Adjusted operating			Profit for the year
	Revenue		Operating profit	attributable to owners	Earnings per share
		profit
						of the parent
Fiscal year ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
March, 2024	854,000	4.1	151,000	9.4	132,500	12.9	101,000	13.1	135.64

(Note) Assumed exchange rate for the fiscal year ending March, 2024: USD1=130 JPY, EUR1=145 JPY

*Notes

1. Changes in significant subsidiaries during the year (changes in specified subsidiaries resulting in the change in scope of consolidation): Yes

Newly included: －Company	(Company Name) －
Excluded	: 1 Company	(Company Name) Terumo Yamaguchi D&D Corporation

As of October 1, 2022, Terumo Yamaguchi D&D Corporation is excluded from the scope of consolidation due to its extinguishment following the exclusion of an absorption-type merger in which Terumo Yamaguchi Corporation, the Company's subsidiary, was the surviving company and Terumo Yamaguchi D&D Corporation was the extinguished company.

1. Changes in accounting policies and changes in accounting estimates

1. Changes in accounting policies required by IFRS: Yes
2. Changes in accounting policies other than (i): None
3. Changes in accounting estimates: None

• Please refer to [Attachment], page 15, "3. Consolidated Financial Statements and Main Notes (5) Notes Pertaining to Consolidated Financial Statements (ii) Changes in Accounting Policy".

1. Number of shares outstanding (common stock)

1. Number of outstanding shares at the end of the year(including treasury shares)
2. Treasury shares at the end of the year
3. Average number of shares during the year

As of March 31,2023	747,682,540 shares	As of March 31, 2022	759,521,040 shares
As of March 31,2023	3,074,907 shares	As of March 31, 2022	3,194,976 shares
As of March 31,2023	750,614,507 shares	As of March 31,2022	756,209,050 shares

• Financial statements are not subject to audits by certified accountants or audit firms.
• Explanation on appropriate use of financial results forecasts and other special notes
• 1. Forward-lookingstatements, including earnings forecasts, contained in these disclosure materials are based on currently available information and assumptions believed to be reasonable by management. This is not a promise or guarantee by the Company that it will achieve these goals. In addition, actual results may differ significantly due to several factors. For the assumptions that are the premise of the earnings forecast and the precautions for using the earnings forecast, refer to [Attachment], page 6, "1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023 (4) Mid- to Long-term Outlook."
  2. Adjusted operating profit factors out amortization expense for intangible assets obtained during acquisitions and one-off income and expenses from operating profit. In addition, adjusted operating profit is consistent with segment profit. We are disclosing adjusted operating profit as we are using it as a performance indicator.

[Terumo Corporation] Financial Results for the Fiscal Year Ended March 31, 2023

• Table of contents of attached materials

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023	2
(1)	Overview of Consolidated Business Results	2
(2)	Overview of Consolidated Financial Position	5
(3)	Cash flow trends in the fiscal year ended March 31, 2023	5
(4)	Mid- to Long-term Outlook	6
(5)	Basic policy for profit distribution, dividend payouts in the fiscal year ended March 31, 2023 and payout
	plan for the fiscal year ending March 31, 2024	7
2. Basic Concept Regarding the Selection of Accounting Standards	8
3. Consolidated Financial Statements and Main Notes	9
(1)	Consolidated Statement of Financial Position	9
(2)	Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income	11
	Consolidated Statement of Profit or Loss	11
	Consolidated Statement of Comprehensive Income	12
(3)	Consolidated Statement of Changes in Equity	13
(4)	Consolidated Statement of Cash Flows	14
(5)	Notes Pertaining to Consolidated Financial Statements	15
	(i) Going Concern Assumption	15
	(ii) Changes in Accounting Policy	15
	(iii) Segment Information	16
	(iv) Earnings per Share	19
	(v) Impairment of Non-Financial Assets	20
	(vi) Subsequent Events	20
4. Others	21

－ 1 －

[Terumo Corporation] Financial Results for the Fiscal Year Ended March 31, 2023

1. Overview of Financial Results for the Fiscal Year Ended March 31, 2023

1. Overview of Consolidated Business Results
   In December 2021, the Terumo Group disclosed the 5-Year Growth Strategy. The strategy focuses on "From Devices to Solutions" as its vision in response to the major paradigm shifts taking place in healthcare, including the number of people living with chronic diseases rapidly increasing due to aging populations, and personalized medicine gaining traction through the evolution of genomic medicine and artificial intelligence (AI). We will promote management that transforms us into a company that can propose comprehensive solutions to customers' issues by shifting our focus from products to customers and becoming more actively involved in the entire healthcare ecosystem. Consolidated financial results for the fiscal year under review, the first fiscal year of this 5-Year Growth Strategy, were as follows.

			(Unit: Millions of yen)
	For the fiscal	For the fiscal		Growth
		excluding impact
	year ended	year ended	Growth (%)
	of FX
	March 31, 2022	March 31, 2023
		translations (%)
Revenue	703,303	820,209	16.6	5.4
Gross profit	369,341	417,369	13.0	2.4
Adjusted operating profit	134,441	138,025	2.7	(6.1)
Operating profit	115,960	117,332	1.2	(5.4)
Profit before tax	114,501	116,137	1.4	－
Profit for the year	88,813	89,325	0.6	－
Profit for the year
attributable to owners of the	88,813	89,325	0.6	－
parent

Revenue by geographic areas for the fiscal year under review is as follows:

			(Unit: Millions of yen)
	For the fiscal	For the fiscal		Growth
		excluding impact
Geographic areas	year ended	year ended	Growth (%)
of FX
	March 31, 2022	March 31, 2023
		translations (%)
Japan	206,143	207,385	0.6	0.6
Europe	140,417	160,017	14.0	4.9
Americas	220,400	286,580	30.0	8.6
China	59,350	71,946	21.2	7.2
Asia and others	76,991	94,279	22.5	9.1
Overseas total	497,159	612,823	23.3	7.5
Total	703,303	820,209	16.6	5.4

－ 2 －