Terumo Corporation

Q3/FYTD results: strong beat and record profitability (good + surprising) - Terumo’s Q3 and Q3 year-to-date (fiscal Y/E Mar 31, 2026) delivered record revenue and record operating profitability, exceeding prior guidance pace. - Revenue: JPY 831.6bn (Q3 year-to-date record high). - Profitability: Operating profit (OP) JPY 144.9bn and Adjusted operating profit JPY 173.5bn (both record highs on a Q3 YOY basis). - Profit drivers: continued global demand expansion led by Cardiac & Vascular (C&V) and Blood & Cell Technologies (TBCT), with pricing measures + cost discipline offsetting headwinds.

Growth geography / end-demand: North America strong; tariffs/XFX pressure partially offset (good + challenges) - North America revenue growth: +9% YOY excluding FX (demand growth remained strong). - Segment momentum: - C&V: revenue +8% local currency; strong TIS and Terumo Neuro. - TBCT: plasma-related businesses and cell/gene therapy demand expanding; Global Therapy Innovations supported particularly in North America. - Headwinds: - Tariff impact materializing in Q3, continuing from Q2 onward. - Foreign exchange was negative on both flow and stock basis vs prior year. - Tariff/pricing balance (Q3): Tariffs -JPY 4.2bn (gross margin effect) vs pricing +JPY 3.5bn (partially offset).

One-time items & acquisitions: Leverkusen plant loss, OrganOx consolidated—affects margins (mixed / negative but managed) - Newly acquired businesses included from Q3: - Leverkusen plant: loss -JPY 1.6bn (profit impact; no revenue impact in Q3 per CFO explanation). - Plan: disciplined, step-by-step capex for production line preparations as customer contract certainty increases; pursuing overseas inquiries to secure projects. - OrganOx: profit contribution +JPY 0.5bn (consolidated from this Q3 earnings announcement). - Standalone Q3 OP margin declined mainly due to onetime expenses recognized in the second half of the fiscal year (previously disclosed). - Investors should treat margin volatility as partly accounting/timing rather than solely underlying demand weakness.