press conference & analyst meetingglobal demand for blood transfusion is expanding specialized...

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Press Conference & Analyst Meeting Acquisition of CaridianBCT Holding Corp. Terumo Corporation March 7, 2011

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Page 1: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

Press Conference & Analyst Meeting

Acquisition of CaridianBCT Holding Corp.

Terumo CorporationMarch 7, 2011

Page 2: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Target Company: CaridianBCT Holding Corp. (US)

Seller Company: Gambro AB (Sweden)

Purchase Price: US$2,625M in Cash

Anticipated Closing: April-May, 2011

Summary of Acquisition

Page 3: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Pursue Terumo’s Growth Strategy

Page 4: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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M&A Strategy for “New growth opportunities”

Accelerate Growth strategy for 5 Fields of focus through Organic growth, Alliance and M&A

Global Leader

* May, 2010 IR Presentation

5 Fields of Focus

Transfusion as a key element of healthcare infrastructure

Page 5: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Another Growth Engine

May, 2010 IR Presentation

New Growth Engine

Page 6: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Purposes of Acquisition

Contribute to the expansion of healthcare worldwide

• Developed Countries: Aging populations

• Emerging Countries: Healthcare infrastructure development

Participate in specialized market growth

Significant synergy potential both in technologies and sales

• Products: Existing products and new technology

• Regions: From emerging countries to developed countries

Page 7: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

Cardiac & Vascular Accelerate Innovations

Blood Transfusion To be a Global Leader

General Hospital Global Drug & Devices

Elderly Care, Post-acute Care

Diabetes Care Expanding Global Demand

Emerging Market China, India and Brazil

7

Corporate Growth Strategies

Page 8: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

Blood Management Business

Page 9: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Blood Transfusion Market

Blood Transfusion is essential to Healthcare

Global demand for Blood Transfusion is expanding

Specialized market

Blood Collection

Centrifugation Storage Transfusion

Page 10: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

Terumo Transfusion Products

Blood Bag System

Auto. Processing System Auto Blood Collection

Sterile Connection Welder

Page 11: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

Auto Blood Collection

Pathogen ReductionWhole Blood Processing

Cell Expansion System

Launched in 2010

Therapeutic Apheresis

CaridianBCT Products

Page 12: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Overview of CaridianBCT

Page 13: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

13※ Pre-Audit Data

Headquarters: Lakewood, Colorado, US (Private)

Finance: Sales: US$524M (FY2010)

CAGR12% (Ten years)

Operating Income: US$126M (FY2010)

Facilities: Branches in 32 CountriesPlants (US, UK)

Employees: approx. 2300 people

CEO: David Perez

Page 14: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Blood Bank Hospital / BiolabAutomated Collection

PRT Whole Blood Processes Cell Expansion System

Recently Launched

Esta

blish

ed m

arke

tsNew

ly Ente

red

Marke

ts

Therapeutic Apheresis

64% 24%

7%

※ Figures are Composition ratio

Customer Segments

Page 15: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Access to CaridianBCT’s innovative R&D

capabilities and novel high potential technologies

An innovative total solution company which provides Automated collection system, Disposable kit and software.

Focused on Platelet Market

64% of sales come from Automated Collections business. This core business focuses on high value products which allow blood banks to automatically collect any blood component, in any combination. As a result, CaridianBCT continues to add to its market leading position.

Page 16: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Effects of Acquisition

Terumo + CaridianBCT Blood Management Business

Page 17: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Create the Leading Global Provider to the Blood Transfusion Industry

(US$M) Europe US Japan ROW

CaridianBCT 170 260 20 80

Terumo 50 40 105 95

Total 220 300 125 175

Number One Player• Sales: US$820M

• Enhance Global Presence

• Competitive Products in

Platelet Segment

Regional Synergy• Among Emerging countries

to Developed countries

0

200

400

600

800

1000

Terumo

CaridianBCT

(US$M)

Page 18: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Aging Developed Counties• Increase in Cancer Therapies (Chemo/Radio) Increase in Platelet Demand

• Core business of CaridianBCT

Population Expansion and rising Medical Standard improvement in Emerging Countries• From Basics to High value-added Products

• Terumo + CaridianBCT = Full Range Products

Strong Growth in Blood Transfusion Market

Terumo

AutomatedSemi-AutomatedManual

DevelopedEmerging

CaridianBCT

Page 19: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

Development in New Technologies

•Whole Blood Processing

•Pathogen Reduction

•Cell Expansion

Page 20: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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One Big Step Forward for Globalization

Consolidation of both transfusion business

into one.

Obtain strong business management team

and global business infrastructures.

Page 21: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Effects of Acquisition

Create the leading global provider to the blood transfusion industry

Double Digit Growth in Growing Market

Evolve Terumo’s Global Management

Page 22: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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Financial Impact

Impact on Earnings

• Details of the impact from goodwill and intangible asset will be announced once determined

Impact on EPS

• Accretive to EPS before amortization of goodwill by the end of fiscal year ending March, 2012

Shareholder Return

• Stable dividend level in the near term

Page 23: Press Conference & Analyst MeetingGlobal demand for Blood Transfusion is expanding Specialized market Blood Collection Centrifugation Storage Transfusion. Terumo Transfusion Products

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This announcement contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘expects’, ‘expected’, ‘will’, ‘would’, ‘future’ or similar expressions or by discussion of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this document, including but not limited to: (1) macroeconomic condition and general industry conditions such as the competitive environment for medical equipment business; (2) regulatory and litigation matters and risks; (3) legislative developments; (4) changes in tax and other laws and the effect of changes in general economic conditions; (5) the risk that a condition to closing of the Acquisition may not be satisfied; (6) the risk that a regulatory approval that may be required for the Acquisition is not obtained or is obtained subject to conditions that are not anticipated; and (7) other risks to consummation of the Acquisition. Terumo undertakes no obligation to publicly update any forward-looking statements after the date of this document.

Disclaimer regarding forward-looking statements