Terumo : Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2026 (FY2025)(with note)

I'm Hagimoto, CFO.

Let me walk you through the highlights of our financial results for the second quarter of the fiscal year ending March 2026.

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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2

Highlights

Revenue

Highest ever result for the first half

Strong sales led by the Americas, with 8% growth excluding FX impact

Profit

Operating profit, adjusted operating profit, and profit for the period all reached record highs for the first half

Growth outpaced sales due to pricing measures and appropriate cost control

Revision of FY25 Guidance

Upward revision of revenue and adjusted operating profit reflecting strong fundamentals and changes in foreign exchange assumptions

Downward revision of operating profit reflecting acquisition-related and one-time expenses

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Highlights of our second quarter.

We continued to benefit from a favorable business environment, and our revenue for the first half reached a record high of 534.9 billion yen. In particular, demand in North America remained strong, resulting in an 8% increase in revenue on a local currency basis.

Operating profit, adjusted operating profit, and profit for the period all reached record highs for the first half. In addition to increased revenue, profits are growing at a pace that exceeds revenue growth, driven by global pricing measures and appropriate cost control.

In light of the current business environment, we have revised our full-year guidance announced in May. We have upwardly revised revenue and adjusted operating profit, reflecting strong fundamentals and changes in foreign exchange assumptions due to yen depreciation. On the other hand, we have incorporated temporary costs related to strategic initiatives such as acquisition-related expenses and continuous portfolio reviews into our operating profit outlook. I will explain the details later.

Next slide please.

4

P&L, FCF

Revenue: Driven by TIS and Global Blood Solutions, particularly in North America

Operating Profit: Increased gross profit due to higher sales and pricing measures; Improved profit margins through appropriate cost control despite tariff impacts starting in Q2

Average exchange rate (USD/EUR) 153JPY/166JPY 146JPY/ 168JPY

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149JPY/164JPY 147JPY/172JPY

Moving on to our P&L performance, revenue was driven by C&V and TBCT Companies. Despite negative currency impacts, revenue for the first half reached a record 534.9 billion yen.

Operating profit and adjusted operating profit both grew faster than revenue, reaching record highs of 101.0 billion yen and

114.4 billion yen, respectively. From the second quarter, tariff impacts began to materialize, but profit growth was achieved mainly through pricing measures and appropriate cost management.

Next slide please.

5

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FY25 Q2 FY25 Q2 Adj. OP OP

FY24 Q2 FY24 Q2 OP Adj. OP

G/P increment by sales increase: TIS and GBS led the overall growth

Gross margin/Price:

C&V pricing measures contributed; however, tariff impact started in Q2 offset pricing effect

SG&A:

Increase due to business expansion

R&D:

Slight decrease YoY due to impairment of capitalized R&D last year

FX:

Flow -0.5 B JPY, Stock -4.0 B JPY

451

431

-45

FX

G/P increment by

sales increase

553

R&D

-66

SG&A

529

19

-1

Gross Margin/ Price

(100M JPY)

118

OP Variance Analysis (Q2): Growth due to strong sales

Since the year-on-year OP variance analysis for the second quarter reflects the same trend as the first half, we will provide further details on the next slide.

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FY24 FY24 FY25 FY25

Q2 YTD Q2 YTD Q2 YTD Q2 YTD

OP Adj. OP Adj. OP OP

G/P increment by sales increase: TIS and GBS led the overall growth

Gross margin/Price:

C&V pricing measures contributed more than expected, however tariff impact started in Q2 partially offset pricing effect

SG&A:

Increase due to business expansion

R&D:

Slight decrease YoY due to impairment of capitalized R&D last year

FX:

Flow -1.9 B JPY, Stock -1.2 B JPY

incre

by

sales ase

877

G/P increment

1,010

-31

FX

R&D

-108

SG&A

1,144

Gross Margin

/Price

1,040

20

42

182

OP Variance Analysis (Q2 YTD): Contribution from pricing measures and strong sales

(100M JPY)

OP variance analysis for the first half.

Overall, increased sales driven by continued demand expansion contributed to profit growth.

G/P increment by sales increase: Led by overseas TIS, especially in North America, and by plasma business under Global Blood Solutions.

Gross Margin / Price: Pricing measures in C&V contributed significantly to profit growth, though positive effects were partially offset by tariffs, inflation, and mix effects.

SG&A: Increased with business expansion, remaining within expected levels.

R&D: Decreased slightly year-on-year, partly due to last year's impairment losses on capitalized R&D.

FX impact: Negative both on flow and stock basis compared to the previous year.

Next slide please.

576

7

413

308

397

13%

(19%)

TCV

Terumo Cardiovascular

TA

Terumo Aortic

with VBP (Volume-Based Procurement), maintaining strong performance. In Japan, cerebral aneurysm treatment performed well. In Europe, product demand expanded and grew

: Achieved global growth and exceeded plans. Effects of price revisions also materialized

: While supply issues with surgical vascular products remain, hybrid product rollout progressed as planned

+19

+3

4%

FY23 FY24 FY25

Profit % 23% 27% 25%

FY23 FY24 FY25

22% 25% 27%

Profit

: Achieved double-digit profit growth through higher sales and pricing measures

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Adjusted Operating Profit

870

769

: Double-digit growth across all product areas in US excluding FX impact, driven by volume increases and pricing measures

: In China, sales channels expanded +30

TIS

Terumo Interventional Systems

TN

Terumo Neuro

5%

(8%)

1,351 1,496 1,642

10%

Revenue

2,657

Q2 YTD

YoY

+107

3,063 3,221

( ) FX Neutral

Comments

Q2 YTD

Q2

C&V: TIS led the way, continued expansion mainly in North America

(C&V: Cardiac and Vascular) (100M JPY)

Let me now explain results by Company.

Please note that the "Revenue by Region" slide, which was previously shown earlier, is now placed and comes after the "Revenue by Company" slides.

First, the Cardiac and Vascular Company. Revenue grew by 8% on a local currency basis, with strong global performance centered in North America. TIS and Neuro led growth, while Cardiovascular also achieved high single-digit growth in local currency, driving overall Company performance. Although Aortic experienced supply issues with surgical vascular products during the first quarter, revenue rose due to recovery trends from the second quarter and strong progress in expanding sales of hybrid products.

Operating profit improved by 2 points to 27%. Pricing measures, profitability improvement measures, and the review of unprofitable regions have contributed. FX stock impact was negative, resulting in a slight decrease in margin compared to the first quarter, but fundamentals remain solid.

Next slide please.

Adjusted Operating Profit

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127

135

83

55

62

69

10%

6%

(4%)

PS

Pharmaceutical Solutions

+32

Profit %

FY23 FY24 FY25

11% 12% 12%

FY23 FY24 FY25

9% 12% 13%

Profit

8

: Increased due to higher sales and pricing measures

-4

: In Japan, pricing measures progressed smoothly, but revenue declined due to business transfer and supply issues. Overseas, revenue declined due to factors including a rebound following last year's temporary demand surge in North America

: Domestic sales decreased due to shrinking SMBG (Self-Monitoring of Blood Glucose) market. Overseas sales progressed as planned, led primarily by Asia

: In Japan, CDMO business recovered from previous timing differences in Q2, resulting in increased revenue. Overseas, PLAJEX performed well in Europe and US

LCS

Life Care Solutions

5%

1%

(2%)

552

525

503

Revenue

Q2 YTD

YoY

-15

HCS

Hospital Care Solutions

( ) FX Neutral

1,043 1,056

940

Comments

Q2 YTD

Q2

TMCS: Increased sales in PS contributed to revenue and profit growth

(TMCS: Medical Care Solutions) (100M JPY)

Next is TMCS, the Medical Care Solutions Company.

Revenue for the first half increased, driven by growth in Pharmaceuticals. This growth reflects the impact of delivery timing shifts in certain areas of the domestic CDMO business being recorded in the second quarter, along with the continued strong performance of PLAJEX overseas.

Hospital Care saw a temporary revenue decline due to last year's business transfer and ongoing supply issues for some products. Pricing measures started in April are progressing well.

Profit growth was supported by recovery in Pharmaceuticals. Next slide please.

64

GTI

Global Therapy Innovations

: Demand for cell collection for cell and gene therapies expanded, and demand for equipment replacement continued especially in US

+2

Adjusted Operating Profit

132

156

Profit

48

15%

86

34%

106

18%

(24%)

: Profit increased, driven by improved profitability from higher sales of Rika (source plasma collection system)

FY23 FY24 FY25

Profit % 11% 13% 15%

FY23 FY24 FY25

13% 13% 15%

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9

841

TBCT: Plasma innovation drove revenue, profit progressed as planned

(TBCT: Blood and Cell Technologies) (100M JPY)

Q2

Q2 YTD

Comments

Q2 YTD

YoY

( ) FX Neutral

980

1,071

9%

(14%)

Revenue

GBS

Global Blood Solutions

: Rika (source plasma collection system) increased significantly in addition to strong sales of whole blood collection systems in US

+89

554

432

484

Continuing to TBCT, the Blood and Cell Technologies Company.

Revenue grew significantly in plasma innovation under Global Blood Solutions. Rika deployment to existing customers was completed in the first quarter, and operational optimization will continue. Core business is progressing as expected.

In Global Therapy Innovations, revenue increased due to growing demand for cell collection in cell and gene therapy, especially in the US, along with replacement demand for certain devices.

Profit increased, led by improved profitability from higher sales of Rika.

Next slide please.

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Revenue by Region: Americas strongly drove overall growth

FY25Q2 YTD

Regional breakdown

( ) FX Neutral

Q2YTD

Americas FY23

FY24

1,537

1,906

FY25 2,071

Q2

797

947

966

9%

(15%)

All Companies continued to see robust demand. TIS, PS, and GBS each drove double-digit growth excluding FX impact. TA's Q2 recovery also contributed positively

In C&V, TIS and TN maintained stable growth, and TCV increased revenue due to price revisions. In TMCS, PS saw significant revenue growth

C&V continued to grow, especially driven by double-digit growth in TN. In TMCS, HCS saw revenue decline mainly due to business transfer, while PS increased revenue due to recovery from timing differences

China

411

446

451

211

215

222

1%

(5%)

Asia and

585

Others 627

607

290

304

313

-3%

(2%)

In C&V, TN continued to grow through expanded sales channels via VBP. TA saw revenue decline due to supply constraints and tariff impacts

C&V grew due to increased demand across all segments. HCS, PS, and GBS saw revenue declines due to timing differences

Revenue by Region.

In Americas, demand expansion continued, with double-digit growth in local currency. All Companies showed strong growth, with TIS, Pharmaceuticals, and Global Blood Solutions serving as key drivers of global revenue.

In Europe, stable growth in TIS and Neuro, and strong performance of PLAJEX drove Pharmaceuticals segment growth.

In Japan, Pharmaceuticals contributed to higher revenue, supported by the recognition of delivery timing adjustments in CDMO during the second quarter. Neuro sustained its double-digit growth trend in C&V.

In China, Neuro maintained strong growth, supported by the successful expansion of sales channels under VBP, resulting in higher revenue.

In Asia, C&V achieved revenue growth, while Hospital Care, Pharmaceuticals, and Global Blood Solutions posted declines in the first half due to delays in tender timing.

Next slide please.