Terumo Corporation

Strong Q3 performance; exceeds guidance (headline positives) - Revenue: Record JPY 831.6bn for Q3 YTD; also record highs for the quarter. - Growth driver: Ongoing demand expansion, led by Cardiac & Vascular (C&V) and Blood & Cell Technologies (TBCT). - North America: +9% YoY ex-FX (strong demand growth). - Profitability: Adjusted operating profit and operating profit reached record highs on a Q3 YoY basis: - Operating profit: JPY 144.9bn (Q3 YTD) - Adjusted operating profit: JPY 173.5bn (Q3 YTD) - Management view: Despite tariff impacts and one-time items, results exceeded the pace assumed in FY25 guidance.

Tariffs + FX + mix pressures, but pricing/cost control offset them (what’s bad / challenges) - Tariff impact: Materialized further in Q3 (and into Q3 YTD). - In Q3 profit variance: tariffs -JPY 4.2bn via gross margin & pricing, partially offset by pricing +JPY 3.5bn. - FX: Negative on both flow and stock basis YoY; also cited as a factor in gross profit rate decline. - Gross margin (Q3 only): Slight decline vs prior year; attributed to tariffs, FX, and newly acquired OrganOx effects. - Onetime expenses: Consolidated/underlying margin dynamics affected by onetime costs recognized in the second half (notably making standalone Q3 OP margin decline).

Acquisitions now consolidated; early impact mixed but promising (surprising + opportunities) - Start of consolidation: From this quarter, Leverkusen plant (pharma solutions) and OrganOx are included in consolidated results. - Leverkusen plant: Loss ~JPY 1.6bn in Q3 (on profitability), with the company planning a disciplined/cautious capex approach and step-by-step production line ramp as customer contract certainty increases. - OrganOx: Included starting Q3; Q3 revenue JPY 2.9bn and adjusted operating profit JPY 0.5bn. - OrganOx YoY: Revenue +50%, and profit margin improved from 13% to 21%. - Surprising positive: OrganOx showed more-than-proportional profit growth (investor question noted OP growth far faster than revenue, explained as structural profitability and scale benefits).