Terumo (4543) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic Growth and Business Overview

• Achieved $7 billion in global sales across three segments: cardiac & vascular, medical care solutions, and blood & cell technologies, with 79% of revenue from overseas markets and operations in over 160 countries.

• Diverse portfolio of more than 52,000 products and 29 production bases worldwide, supporting consistent revenue growth through organic expansion and strategic acquisitions.

• Margin expansion to 20% targeted for FY2026, supported by disciplined operations, price adjustments, and divestment of non-core businesses.

• FY2025 guidance targets 8% revenue growth and 24% operating profit growth, with OP margin reaching 17.8%, setting a strong foundation for FY2026.

• Long-term vision centers on innovation, robust sales growth, and leadership through R&D, M&A, and evolving into a global top-tier medtech leader.

Core Business Drivers and Innovation

• Vascular access products account for over 70% of cardiac & vascular segment revenue, with leadership in introducer sheaths, guidewires, and transforming commodity devices into high-value offerings.

• Pioneered radial access technology, now the gold standard in PCI, and holds top global and domestic market shares in key products.

• Launched innovative products like the Dual Sensor System and WEB Embolization System, targeting phased US entry and expanded clinical evidence, driving double-digit growth.

• CDMO business leverages one-stop device development and manufacturing, aiming for $1 billion in sales in the 2030s, with 17% CAGR since FY17.

• Blood and cell technologies segment driven by Rika plasma collection system, achieving rapid U.S. growth and maximizing recurring revenue.

M&A Strategy and OrganOx Acquisition

• M&A guided by five criteria: technological excellence, competitive advantage, synergy, financial profile, and cultural fit.

• OrganOx acquisition brings advanced perfusion technology, expanding from liver to kidney and potentially other organs, supporting innovation in organ transplantation.

• OrganOx's NMP technology addresses organ supply bottlenecks, enabling use of more donor organs, supporting drug development, and improving transplant outcomes.

• OrganOx expected to maintain high double-digit growth, with a revenue target of ¥100 billion within 10 years.

• Post-merger integration emphasizes mutual communication, autonomy, and synergy creation.