Decision Regarding the Termination of the Supply Agreement with CSL Plasma
Hikaru Samejima Chief Executive Officer Terumo Corporation
October 8, 2026
First, I will explain our decision to terminate the Supply Agreement with CSL Plasma and its financial impact. I will then review the Plasma Innovation business and discuss the future direction of Terumo Blood and Cell Technologies.
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.
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Decision Regarding the CSL Plasma Supply Agreement
Agreed to terminate the current supply agreement with CSL Plasma, gradually wind down supply and focus TBCT resources on other businesses.
Key Decisions
Agreed to terminate the current supply agreement with CSL Plasma effective today
Implement the agreed transition plan and support the orderly wind-down of supply activities
Expect to record approximately US$610 million in impairment charges and related costs in FY26
Background
Decision follows CSL Plasma's August 2026 notification to transition a portion of its collection centers to another technology platform, citing areas where Rika did not fully meet customer expectations, among other factors.
Following the notification, both parties continued discussions regarding future contractual arrangement
Rationale for the Decision
After reassessing the long-term business outlook, required future investments, and expected returns, TBCT concluded that it is more appropriate to focus its resources on other businesses with
larger market opportunities and stronger profitability
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Overview of the
Plasma Innovations (PI) Business
Plasma Innovations business is reported within TBCT
CSL Plasma is the primary customer of the PI business in TBCT, accounting for the vast majority of its revenue
2021: Strategic collaboration between TBCT and CSL Plasma began
2022: The Rik Plasma Donation System received U.S. FDA clearance. TBCT established a new manufacturing facility in Colorado to produce disposables, with approximately US$250 million invested in the business.
a
Today, we reached an agreement with CSL Plasma to terminate our current supply agreement.
Going forward, we will work with CSL Plasma to execute the agreed
transition plan and ensure an orderly wind-down of supply activities, while taking into account the impact on customers, employees, and business partners.
As background, in August of this year, CSL Plasma informed us of its intention to transition certain plasma collection centers to a competitor's technology platform, citing several factors, including areas where Rika did not fully meet customer expectations.
Following this notification, we continued discussions regarding future contractual arrangements.
After reassessing the long-term outlook of the business, the additional investments that would be required, and the expected returns, we concluded that it would be more appropriate to focus TBCT's resources on core businesses with larger market opportunities and stronger profitability.
At this point, we expect to record approximately 610 million U.S. dollars in impairment charges and related costs associated with this decision.
I will explain the details on the next slide.
Financial and FY26 Guidance Impact
FY26 guidance revised downward to reflect approximately US$610 million of impairment charges and related costs.
Financial Impact Impact on FY26 Guidance
Impairment Charges US$450M1
(Non-cash)
Related Costs US$160M1
(Transition, termination and restructuring-related costs)
Primarily related to manufacturing facilities, equipment and other fixed assets
(100M JPY)
FY26 Previous guidance
FY26 Revised guidance
Sales
12,390
12,295
AOP (%)
2,745 (22.2%)
2,745 (22.2%)
OP (%)
2,575 (20.8%)
1,600 (13.0%)
Net Profit
1,931
1,200
Dividend/Share
36Yen
36Yen
Business losses incurred during the transition period, contract termination costs, restructuring expenses and employee-related costs
Both amounts are current estimates and are subject to change depending on future developments
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Of the approximately 610 million U.S. dollars, 450 million dollars relates to impairment charges on manufacturing facilities, Rika-related equipment, product technology, and other associated assets in which we have invested. The remaining 160 million dollars consists of business losses expected during the transition period until the final termination of supply, contract termination costs, restructuring expenses, and employee-related costs.
As a result of these impairment charges and related costs, we have revised our FY26 earnings guidance downward.
Under our revised guidance, we now expect revenue of 1,229.5 billion yen, operating profit of 160 billion yen, and net profit of 120 billion yen.
Please note that these estimates are based on information currently available to us and may change depending on future contract negotiations, asset valuations, and transition arrangements.
Next, I would like to provide more detail on the rationale behind this decision.
Our Assessment of the PI Business
While Rika has created substantial value, changes in the business environment made originally anticipated economic returns increasingly difficult to achieve.
Original Strategic Rationale Business Environment Changes and Impact
Entered the source plasma market through a collaboration with CSL Plasma to address the industry's need for innovation in plasma collection
Customer value in plasma collection depends on reliability, ease of use, software, connectivity and operational support, in addition to collection performance
Expected to drive growth through a solution
business in collaboration with CSL Plasma • Delivering this broader value proposition required
more investment and time than originally anticipated
The Rik Plasma Donation System introduced
a next-generation technology that disrupted the • Volume growth and profitability improvement were source plasma collection market delayed by more than two years
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First, let me revisit the rationale for entering this business.
We entered the source plasma market through our collaboration with CSL Plasma to address the industry's need for innovation in plasma collection.
At that time, we believed this solution business in collaboration with CSL Plasma could achieve strong growth and profitability in a market with attractive growth prospects, supported by rapid expansion at scale.
We believe Rika has provided a new option to the source plasma collection market through its next-generation technology.
In addition, we gained valuable experience and expertise in areas such as disposables technology, manufacturing, and quality management.
However, the business environment has changed significantly over the past several years.
Customer value in plasma collection depends not only on collection efficiency, but also on system reliability, ease of use, software functionality, data connectivity, and operational support.
While Rika demonstrated value in collection performance, and we continued to make improvements in other areas, delivering this broader value proposition required more investment and time than we originally anticipated. Although we believed the business could generate attractive economic returns when we entered the market, deployment across all CSL Plasma centers was delayed by more than two years. During that time, competing products and services also continued to evolve.
As a result, volume growth and profitability improvement did not progress at the pace we had expected, making it difficult to achieve our original profitability targets.
Based on these considerations, we concluded that this decision will improve profitability and capital efficiency at TBCT and across the Terumo Group.
Next, I will explain TBCT's future growth strategy and profitability outlook.
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FY26 FY27 FY28 FY29 FY30 FY31
Note: FY26 reflects the full-year guidance announced in May 2026.
Spectra OptiaTM
ReveosTM
Trima AccelTM
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16%
Sal
TBCT profitability is expected to improve from
FY27 onward, supported by portfolio reshaping and increased focus on core businesses
Continued growth of core blood processing business, led by apheresis collection and automated whole blood processing.
Expansion of therapeutic apheresis across disease-states and geographies.
Enhanced operational excellence through optimization of manufacturing, R&D and organizational capabilities.
TBCT Growth Drivers and Profitability Outlook
Through the reshaping of the TBCT portfolio, resources will be concentrated on the core businesses with larger market opportunities and stronger profitability. As a result, TBCT profitability is expected to improve from FY27 onward.
Key Growth and Profitability Drivers for TBCT TBCT Profitability Outlook
es AOP%
Going forward, we will concentrate our resources on automated whole blood processing and therapeutic apheresis, which offer larger market opportunities and stronger profitability, while our fundamental growth strategy for TBCT's core businesses remains unchanged.
We continue to see strong competitiveness and attractive global growth opportunities in automated whole blood processing and therapeutic apheresis. We will optimize our organization and manufacturing footprint and further concentrate resources on our core businesses, where we have strong competitive advantages and profitability.
By gradually eliminating losses and reducing additional investment related to the PI business, we expect to improve TBCT's profitability and capital efficiency.
We will provide further details at our second-quarter earnings presentation in November, but we currently expect TBCT's profit margin to recover to the 20% range from FY27 onward.
More specific details on our growth strategy will be shared as part of GS31, our next five-year growth strategy, which we plan to announce in December.
Key Takeaways
Management's Reflection
Commitment to Ongoing Portfolio Transformation
Further details will be provided as part of GS31, our next five-year growth
strategy (December 15)
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Before concluding, I would like to acknowledge that we deeply regret having reached this decision, both for the customers who have supported us over many years and for the employees who have dedicated themselves to the PI business.
We also take seriously the fact that this has resulted in a significant loss and that we were unable to generate an adequate return on the capital invested in this business.
At the same time, this decision is part of the portfolio transformation we have been discussing.
In light of changes in the business and competitive environment, we reassessed future growth opportunities, profitability, and capital efficiency. As a result, we concluded that limiting further investment and allocating resources to businesses with stronger growth and profitability will create greater long-term value.
At our second-quarter earnings presentation in November, we expect to provide additional perspective on TBCT's future growth and profitability.
Looking ahead, we will continue to invest in growth opportunities across the company while maintaining our commitment to ongoing portfolio transformation.
In GS31, our next five-year growth strategy beginning in FY27, we will further advance this approach.
We are currently refining the strategy for our December announcement and are working to present a broader strategic vision for Terumo's future growth. We will apply the lessons learned from this experience to strengthen our management decisions and drive sustainable growth and long-term corporate value.