TERUMO CORPORATION Q3 FY2026 earnings call

• Strong earnings results exceeding guidance, revenue reached record highs both for quarter and year-to-date, led by North America. • Operating profit and adjusted operating profit reached record highs. • Tariff impact offset by pricing measures and cost control. • R&D expenses decreased slightly due to impairment losses and R&D priority review. • Acquisition of Leverkusen plant and OrganOx included in consolidated results from Q3. • C&V had strong global performance, Pharmaceutical Solutions drove growth with CDMO and overseas projects, Global Blood Solutions saw revenue growth from plasma innovations, OrganOx included in results showing growth. • Restructuring initiatives to optimize workforce overseas expected to save JPY 3 billion annually towards achieving GS26.

Cardiac and Vascular Company: Revenue increased 8% on local currency basis, led by TIS and Terumo Neuro; profit margin improved to 26% but declined year-on-year in Q3 due to foreign exchange. Pharmaceutical Solutions: Drove revenue and profit growth led by domestic CDMO and overseas projects; Hospital Care Solutions and Life Care Solutions had revenue declines but are recovering. Leverkusen plant included in consolidated results from Q3. Global Blood Solutions: Revenue increased significantly driven by plasma innovations; profit increased due to expanded sales of Rika and cost control. Regional performance: Americas had double-digit growth, Europe stable with Pharmaceutical Solutions projects, Japan CDMO and C&V grew, China revenue increased with Terumo Neuro and TIS growth.

• Business based on existing operation steadily progressing towards GS26. • Main onetime expenses outlined on Page 18, with structural reforms to improve profitability. • Pricing measures to pass on inflation impacts to continue beyond next financial year. • Restructuring projects in overseas with JPY 1 billion onetime cost in FY '26 expected to have positive impact beyond. • Expect OrganOx to return to expected trajectory in quarter 4. • GS26 to be achieved by meeting financial objectives of double-digit revenue growth, 20% operating profit ratio, and 10% ROIC excluding M&A impact.

Q: On Page 18 amortization, evaluation of inventories and goodwill costs, A: Amortization costs for current fiscal year reevaluated lower than initial expectations, inventory step-up reevaluated under IFRS rules.

Q: About Rika revenue and deployment, A: No late deployment of Rika, proceeding steadily, improving product and promoting to acquire customer take-up.

Q: Projects for next financial year, pricing and restructuring, A: Continuing to pass prices based on inflation, restructuring in overseas with JPY 1 billion onetime cost in FY '26.

Q: Gross profit ratio in quarter 3, impact of tariffs, product mix, A: Tariffs, weakening yen, and OrganOx purchase impacted gross profit ratio.

Q: Rika business, customer base, A: Approach to big potential customers unchanged, expanding with small to medium-sized customers.

Q: OrganOx sales, pace, A: Quarter 3 sales slightly below prediction due to lack of donors, but expected to return to trajectory in quarter 4.

Q: Rika profitability, margin impact, A: Net sales for Rika on plan, margin impact minimized by production adjustment and higher production efficiency.

Q: Impact of CSL changes on Rika, A: No significant impact foreseen on Rika disposables to CSL.

Q: GS26 criteria, A: Need to achieve double-digit revenue growth, 20% operating profit ratio, and 10% ROIC excluding M&A impact.