Social and Environmental Report 2012(7.7MB)

TERUMO CORPORATION 7 8 9 1 2 4 6 30 10 11 12 13 14 15 16 21 23 25 �

��

Terumo Medical Pranex Terumo — ��

��

Professionals

��

Social and Environmental Report 2012 with Partners Together with Our Associates Together Social Contribution Activities with Stakeholders Together with Customers Together and Investors with Shareholders Together without Fear of Falling Helping the Elderly Walk Never Allow a Disruption in Medical Care—the Great East Japan Earthquake Relationship with the Society Coronary Intervention via the Wrist to Get Patients Walking Immediately after the Procedure Get Patients Walking Coronary Intervention via the Wrist to of Healthcare Contributing to Medical Safety and Skill Development Medicine Supporting Cancer Patients Transfusion Injections Greater Effectiveness of Vaccine Feature Report: Contributing to Society through Healthcare Feature Report: Contributing Therapy Striving for Minimally Invasive Neuroendovascular Treatments Aiming for Cutting-edge Coronary Intervention Compliance Corporate Policy Corporate Governance Policy A Message from the President A Message from

Social and Environmental CONTENTS Report 2012 65 66 68 71 74 75 77 79 80 37 41 44 48 51 56 59 62 64 ��

��

Social and Environmental Report 2012 ��

Consolidated Income Statement Reporting Policy 5-year Financial Summary (Consolidated) Overview by Business Segment Overview by Geographic Segment Consolidated Balance Sheet Corporate Data Activities and Achievements of Social and Environmental Targets Environmental Auditing Business Activities and Material Flows Site Data History of Our Environmental Activities Preventing Global Warming Effective Use of Resources Proper Control of Chemical Substances Purchasing Promotion of Green Procurement and Feature: Initiatives for Biodiversity Conservation Feature: Initiatives Business Activities Promoting Environment-Friendly Friendly Products Developing Environmentally Relationship with the Environment Relationship with

Social and Environmental CONTENTS Report 2012

1 . .

The

. lture to We have set internal We . Thank you for your unwavering support Thank you for your unwavering support . The chairperson and more than half of The chairperson and more than half of . I believe that my mission is to do my utmost I believe that my mission is to do my utmost . YUTARO SHINTAKU YUTARO . Shibasaburo Kitasato, known in Japan as “the father Shibasaburo Kitasato, . We have also established a Corporate Governance We . President & Representative Director - with the aim of enhancing transparency and objec mittee erumo Shareholder Returns Corporate Governance Principle he are independent directors members of the committee Com t will stably increase dividends with a target payout ratio of Terumo 30% over the medium to long term, linked to business performance and investment plans in management to achieve sustainable growth, and contribute to of T Terumo has formulated a corporate governance principle aimed has formulated a corporate Terumo at ensuring it remains a trusted corporation be independent rules requiring that at least 20% of directors auditors be directors, and that more than half of corporate steps to reinforce external corporate auditors, along with other function and improve the quality of decision- oversight the board’s making tivity of management evaluates committee recommends candidates for directorships, proposals director performance and deliberates on compensation cu believe that along with better systems, a corporate We workplace with open create “a highly motivating and challenging spirit,” is vital toand candid communication, with forward looking foster such valueseffective governance, and are taking action to healthcare around the world

. . In accordance with our corporate mission of “Contributing to Society through corporate mission of “Contributing to In accordance with our . In developing . . In developed countries, We will establish a new We . . . In addition to the effort to . We are expanding our overseas We . Social and Environmental Report 2012 At the same time, in recent years the . ” Their aspiration was to create a superior clinical thermometer to protect peoples’ health, and we con- to create a superior clinical thermometer ” Their aspiration was . . ietnam, the second in the country, and expand the ietnam, the second in the country, We will remain steadfast in our infrastructure invest- We As medical devices are only effective when used properly, As medical devices are only effective when . . s graying society, we are working to proactively address the we are working to proactively s graying society, A Message from the President from A Message FDA and other countries’ government authorities have . Terumo draws on its unique technologies in the pursuit of new draws on its unique Terumo S . A Stronger Foundation for Sustainable and Profitable Growth Continued Pursuit of New Value ments, establish an unshakable foundation for sustainable growth, and strive to ensure safety and reliability factory in V U tightened regulations, requiring an even stricter system of quality control production scale of existing factories in Vietnam and the Philip- production scale of existing factories in Vietnam pines, as well as taking other measures to strengthen our global production competency production base to meet the growth in global demand over the medium to long term, as well as to bolster our price competitive- ness and resilience to the strong yen Terumo conducts global management with the goal of “sustain- Terumo able and profitable growth” in order to continuously contribute to society through healthcare Further, as a medical device manufacturer developed to cope with as a medical Further, Japan’ issues of aging populations around the world reducing medical costs and improving the quality of life have reducing medical costs and improving the quality the social landscape become major issues, shaped by changes in like aging populations and slowing economies is spurring grow- countries, meanwhile, economic development ing needs with respect to healthcare to lessen the improve treatments more effective, we are working the economicphysical strains on patients, as well as to enhance stays and otherefficiency of medicine through shorter hospital means of support towe also provide technical training and other types technologies medical professionals for the safe use of advanced value to address such public needs The environment surrounding the healthcare industry has been The environment surrounding the healthcare undergoing a dramatic transformation of modern medicine of social issues that products, and proactively address the host superior a stable supply of high-quality, Healthcare,” we provide surround healthcare Terumo was established in 1921 by a group of medical scientists led by Dr was established in 1921 by Terumo maintain this same spirit tinue to respect and Continuously “Contributing to Society through Healthcare” “Contributing to Society through Continuously

Social and Environmental A Message from the President Report 2012 2 . . . . . Social and Environmental Report 2012 . Corporate Policy Corporate Respect for Our Associates Corporate Citizenship Safety and Reliability Enhanced Value Enhanced Value Open Management 5 Statements Corporate Vision Corporate Mission Corporate Mission We conduct our business activities in a fair and equitable manner and act responsibly toward the environment as we fulfill our responsi- conduct our business activities in a fair and equitable manner and act responsibly toward the We bilities as a good corporate citizen We emphasize respect for the individual, promote intercultural understanding,and encourage openness in the workplace in accordance emphasize respect for the individual, promote intercultural understanding,and encourage openness We future with our concept of the “Associate Spirit” as we prepare to meet the challenges of the We pride ourselves on our commitment to the development of technologies and quality assurance systems that ensure safe, reliable pride ourselves on our commitment to the development of technologies and quality assurance We products We emphasize the importance of scientific thinking, creativity and time appropriation,and respond in depth to customer needs by creat- emphasize the importance of scientific thinking, We ing valued products and services We maintain a fundamental policy of open management, work to secure and return to our benefactors a suitable profit, and strive to maintain a fundamental policy of open management, We a leading company in the industry develop our business on a global basis as befits “Terumo’s unique technology makes medical treatment kinder and gentler” unique technology makes medical treatment “Terumo’s We contribute to society by providing valued products and services in the healthcare market and by responding to the needs of and services in the healthcare market to society by providing valued products contribute We and the people they serve healthcare providers “Contributing to Society through Healthcare” “Contributing

Social and Environmental Corporate Policy Report 2012 3 ” ” . For this reason, we call our employees “associates we call our employees For this reason, . . Social and Environmental Report 2012 Associate Spirit Associate At Terumo, we believe that our employees are our most valuable assets our employees are we believe that At Terumo, With the “Associate Spirit,” which contains four key concepts put forward by associates themselves in 1996, each of our of our in 1996, each by associates themselves concepts put forward contains four key Spirit,” which With the “Associate respect, and the power of the team through mutual independently tackle new challenges, leverage associates pledges to levels of quality and service offer customers higher

Social and Environmental Corporate Policy Report 2012 4

- The Com- . ” Guided ” Guided . These statements These statements . . . . kind Auditors is entrusted with the auditing functions Together with a commitment to full accountability for with a commitment Together . Achieving sustainable growth and maximizing corporate growth and maximizing corporate Achieving sustainable . . Committee and an Internal Control Committee as bodies that serve to as bodies that serve to Committee and an Internal Control Committee made by all Terumo associates made by all Terumo . long term are other key goals for Terumo long term are other key Social and Environmental Report 2012 Terumo believes that a corporate culture to creat ”a highly motivating and challenging workplace with culture to creat ”a highly motivating and challenging workplace with believes that a corporate Terumo looking spirit,” is essential to effective corporate gover open and candid communication, with forward expectations of its many stakeholders worldwide, consisting of customers, shareholders, associates, of customers, shareholders, associates, stakeholders worldwide, consisting expectations of its many communities at large business partners and value over the Statements for realizing its corporate mission: open management, enhanced has established Five Terumo our associates, and corporate citizenship respect for value, safety and reliability, promotes the creation of frameworks Statements, Terumo Backed by its corporate mission and the Five for honest and effective corporate governance strives to continuously earn the understanding and trust of those within explaining its actions, Terumo the Company outside of and culture of this nance, and strives diligently to foster a The corporate mission of Terumo Corporation is “Contributing to Society through Healthcare Corporation is of Terumo The corporate mission by this mission, the Company provides products and services of real value as it strives to meet the Company provides products and services by this mission, the govern the actions and decisions

Corporate Governance Structure Basic Stance

Corporate Governance Policy Governance Corporate 2. 1. pany has also established a Corporate Governance pany has also established a Corporate Governance of management enhance the transparency and objectivity Governance at Terumo is based on a Company with a Board of Corporate Auditors System, in which business execution is business execution is is based on a Company with a Board of Corporate Auditors System, in which Governance at Terumo the Board of Corporate supervised by the Board of Directors and

Social and Environmental Corporate Governance Policy Report 2012 5

. . . November 17, 2011 17, November ...... and executive officer and from among the corporate auditors of the membership must be independent directors who who independent directors be must membership of the . the President and Representative Director of the Company and President the More than half . . to the duties performed by the corporate auditors corporate by the performed duties the to . . chaired by the Chairman and Representative Director of Terumo chaired by the Chairman Auditors is responsible for the following: Board of Directors by the committee chair the committee by . the directors, and offer pointed input regarding management as required the directors, and offer pointed input regarding . . Social and Environmental Report 2012 as independent directors/auditors as defined by the Tokyo Stock Exchange Tokyo by the as defined directors/auditors as independent . of specialized groups, the Internal Audit Department and the Internal Control Department the Internal Audit Department and of specialized groups, the Corporate governance structure enhancement corporate auditor of director, Selection of candidates for the positions executive officers directors, corporate auditors and Establishment of remuneration systems for Preparation of audit reports of Preparation Election and dismissal of senior corporate auditors operations and financial assets, the status of the Company’s Determining audit policies, methods for assessing and other matters pertaining

Deliberates and advises on the following matters in order to heighten the fairness of the Board of Directors and in order to heighten the fairness of the Board of Directors and Deliberates and advises on the following matters management transparency Consist of up to five corporate auditors, more than half of whom must be external corporate auditors from outside half of whom must be external corporate auditors from outside Consist of up to five corporate auditors, more than Companies Act and satisfy the criteria to stipulated by Japan’s External corporate auditors must meet the terms serve Corporate Auditors is elected by resolution of the Board The chair of possible with reappointment auditors is four years, for corporate office of The term Corporate auditors attend meetings of the Board of Directors and other important meetings, audit the execution of Directors and other important meetings, audit the execution Corporate auditors attend meetings of the Board duties by of Corporate of The Board The term of office for directors is one year, with reappointment possible with year, for directors is one office of The term Monitors the performance of duties by the individual directors and executive officers and executive by the individual directors performance of duties Monitors the value maximizing corporate with a view to decision-making optimal management Strives for functions Fulfills corporate governance of whom may be independent directors directors, 20 percent or more Consist of up to 15 directors/auditors as defined by the Tokyo satisfy the criteria to serve as independent Independent directors must Directors is of The Board Decides matters as authorized by relevant laws and regulations, the Articles of Incorporation and its own internal internal and its own the Articles of Incorporation laws and regulations, as authorized by relevant Decides matters rules the Company Term of office Term Term of Office for Directors of Office for Term Composition of the of Composition Committee Chair by Control Committee is chaired The Internal Role the legally mandated Promotes risk management and compliance with respect to management, and administers of corporate information and timely disclosure Composition general managers of relevant divisions, as well as the Comprised of directors appointed by the committee chair, heads Role Role of the Corporate Auditors and Board of Corporate Auditors of the Corporate Auditors and Role Role of the Board of Directors Role Committee Chair directors by mutual The chair of the Corporate Governance Committee is selected from among the independent vote of the committee members Composition directors and other Comprised of a maximum of six members drawn from independent directors, representative named individuals Composition satisfy the criteria for serving as an independent directors/auditors as defined by the Tokyo Stock Exchange the Tokyo by defined as an independent directors/auditors serving as for satisfy the criteria

(3)

(3) (2) Stock Exchange

(3) (Internal Control Committee) (Internal Control (1) (2) (1) (Corporate Governance Committee) (Corporate Governance (1) (Corporate Auditors and the Board of Corporate Auditors) Corporate of the Board and (Corporate Auditors (Directors and Board of Directors) Board and (Directors (1) (3) (2)

(2) In addition to the legally prescribed bodies detailed above, the Company has established the bodies described below with a view to further enhancing In addition to the legally prescribed bodies detailed above, corporate governance

Social and Environmental Corporate Governance Policy Report 2012 6 The system . In these and other .

. . At the same time, we maintain an outside point of At the same time, we maintain an outside point . Corporate Ethics Hotline The Corporate Ethics Hotline enables all associates to report The Corporate Ethics Hotline We established a “Corporate Ethics Hotline” as an internal established a “Corporate Ethics We in 2003 whistle-blowing system as inappropriate in or consult on matters or situations deemed Group light of the Code of Conduct of the Terumo status to enables associates regardless of their employment letter on an anon- contact this hotline by phone, e-mail or written ymous basis contact at the office of our corporate attorney and protection ways, whistle-blowers are assured their privacy usage and against retaliation as we promote the hotline’s address reported issues . We also We .

In accordance . Through these activities, . ” We carry out training on the ” We . . We will continue to conduct honest will continue to conduct honest We . Social and Environmental Report 2012 . ” In accordance with this basic policy, we we ” In accordance with this basic policy, . . In addition, based on directions of the Internal In addition, based on directions of the Internal . s corporate mission and “Heart of Terumo,” states that s corporate mission and “Heart of Terumo,” Compliance Compliance with Code of Conduct of theCompliance with Code of Conduct of Group Terumo Compliance System Compliance The Code of Conduct of the Terumo Group, which is based on The Code of Conduct of the Terumo To promote these honest and fair business practices, promote these honest and To Terumo’ take “each associate must conduct business activities honestly, responsible actions for environmental conservation and make consistent efforts to enable the company to become a role model reliable corporate citizen Code of Conduct that responds to each site and encourage associates to recognize the importance of corporate ethics clearly state and thereby promote the need to respect human rights and eliminate discrimination in our Code of Conduct as a global company To go further toward meeting social expectations, in April 2008 go further toward meeting To Group,” to Terumo we established the “Code of Conduct of the set the standard for the conduct of daily business activities for Group, including overseas entities the Terumo Control Committee, each entity has appointed a “Compliance Control Committee, each entity has appointed activities, and Officer” whose role is to facilitate compliance carry out such activities at each entity discusses important the Internal Control Committee receives and activities information to enhance group-wide compliance Group to with this code, we are striving throughout the Terumo base our actions on social ethics, as well as in compliance with relevant laws and regulations Terumo’s Board of Directors approved a “Basic Policy on Internal Terumo’s Control Systems which deliberates established the “Internal Control Committee” compliance and executes important group-wide issues from perspectives and fair business practices based on strict legal compliance and and fair business practices based on strict legal as an ethical corporate ethics and thereby maintain our position healthcare company Terumo’s corporate mission, “Contributing to Society through corporate mission, Terumo’s not only of the Company but of all asso- Healthcare,” is the goal ciates who work for Terumo

Social and Environmental Compliance Report 2012 7

. . Angiographic image of a cerebral aneurysm Neuroendovascular coil for Neuroendovascular the treatment of cerebral aneurysms prevent cerebral aneurysms from To rupturing, a microcatheter is used to deploy embolic material (a very small platinum coil) inside the aneurysm to reduce blood flowing in

The . . These new techniques have allowed us to perform .

. I strongly believe that Microvention will continue to play a major role . . Another treatment is a neuroendovascular thera- . Terumo Group company, Microvention has been highly involved in the R&D of new Microvention Group company, Terumo devices that have had a great impact on these evolutionary endovascular tools, which ulti- mately help our patients The treatment of cerebrovascular diseases with neurointerventional techniques has been developing and improving at an unbelievable pace, most notably in the last decade with the impact of endovascular technologies in developing new technologies that will expand the field of stroke treatments less invasive non-surgical procedures through Healthcare through Contributing to Society to Contributing The percentage in Japan is about 30% at present but this . Social and Environmental Report 2012 One way to treat a cerebral aneurysm is to perform a craniotomy to clip One way to treat a cerebral aneurysm is to . INTERVIEW Are Helping Many Patients Innovative Technologies Terumo’s H. Saruhan Çekirge, M.D. Hacettepe University Hospitals Ankara, Turkey Feature Report: Report: Feature In Europe and North America, catheter-based neuroendovascular therapies are used in over 50% In Europe and North America, catheter-based of all treatments of cerebral aneurysm neuroendovascular therapy is likely to increase in the future as it reduces the physical strain on neuroendovascular therapy is likely to increase in the future as it reduces the physical strain patients and does not require a lengthy hospitalization rupturing of a cerebral aneurysm can lead to a life-threatening subarachnoid cerebral hemorrhage or rupturing of a cerebral aneurysm can lead to intracerebral hemorrhage the root of the aneurysm and block the blood flow pies in which a platinum coil is deployed inside the aneurysm via a catheter A cerebral aneurysm is a localized dilation or ballooning of the blood vessel in a cerebral artery A cerebral aneurysm is a localized dilation or Striving for Minimally Invasive Striving for Minimally Neuroendovascular Therapy

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 8 . .

3D intravascular image Physicians are able to confirm the condition of inner vessel wall and stent apposition The quality and resolution of images are really . . I have high expectations that OFDI will support physicians in providing even safer and I am impressed by Terumo’s OFDI technology I am impressed by Terumo’s amazing and superior to the existing imaging technologies more efficient interventional procedures through Healthcare through Contributing to Society to Contributing

. Social and Environmental Report 2012 . INTERVIEW Vessels Gaining Previously Unavailable Information on the Inside of Blood Bernard Chevalier, M.D. Bernard Chevalier, Clinique Jacques Cartier France Feature Report: Report: Feature OFDI achieves high resolution images, and is highly promising in its ability to display *OFDI: Optical Frequency Domain Imaging the condition of inner vessel wall and stent apposition, which have been difficult to detect in the past, further helping physicians to provide even safer and more effective coronary interventins Coronary Intervention Treatments Coronary Intervention and blood vessels from the tip of a catheter, OFDI* employs light applied to the inside of constructs an intravascular cross-sectional image through a new technology that analyzes the reflection from the vessel walls Aiming for Cutting-edge Aiming for Cutting-edge

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 9 . Terumo has been a good Terumo .

Access for interventional system insertion made in the artery of the wrist It . This treatment allows the . Compared to the insertion of a catheter from the groin, the opening is small and there . It has been twenty years since I first started doing coronary interventions initiated at the wrist is less blood loss, reducing the physical strain on the patient partner for physicians, helping to make this procedure more widespread by providing support in terms of both product development and training to enhance physicians’ skills through Healthcare through Contributing to Society to Contributing

. . Social and Environmental Report 2012 Terumo provides support on both fronts, helping to spread Terumo . INTERVIEW Has Been Terumo 20 years since the First coronary intervention through the Wrist a Good Partner for Physicians The procedure also requires advanced skills of physicians, so a proper training . Ferdinand Kiemeneij, M.D., PhD. Gasthuis Onze Lieve Vrouwe Netherlands Feature Report: Report: Feature At the same time, the blood vessels that link the wrist and heart are smaller and patient to be able to walk soon after the procedure, and puts less strain on the body patient to be able to walk soon after the procedure, also shortens the hospital stays, which is expected to help lower the economic burden associated with medical treatment tortuous, requiring a catheter that is small, flexible and that will not damage the blood vessel environment is important this patient-friendly treatment Immediately after the Procedure Immediately after inserting the interventional system at Of the coronary intervention treatments available, the world the artery of the wrist is gaining popularity around the Wrist to Get Patients Walking to Get Patients Walking the Wrist Coronary Intervention via Coronary Intervention

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 10 . TM Pranex provides the .

Comprehensive training facility Medical Pranex Terumo More than 10,000 medical professionals visit annually I have high expectations for Terumo in I have high expectations for Terumo .

. terms of product development and support to enhance safety in medical treatment Through repeated practice performing treatments and procedures we acquire the feel and sense of a technique, giving us confidence when working for patients opportunity to learn techniques in a realistic environment, making it a valuable facility for everyone concerned with better medical safety through Healthcare through Contributing to Society to Contributing . Social and Environmental Report 2012 The center is able to conduct various types of training to meet the needs of . INTERVIEW in a Realistic Environment The Ability to Learn Techniques fessionals —Terumo Medical Pranex Medical —Terumo fessionals Yaemi Nakano Yaemi Medical University Tokyo Director, Vice Hospital, Director of Nursing Feature Report: Report: Feature While providing support to enhance the quality of medical treatment, Terumo is deepen- While providing support to enhance the quality of medical treatment, Terumo Pro “mock hospital,” a training center for medical professionals, Medical Pranex is a Terumo fully equipped with various simulators and hospital facilities that reproduce actual clinical situations medical professionals, from instruction in basic skills such as drawing blood and giving injections, to guidance in advanced medical techniques for specialists, and enhance col- laborative work among physicians and nurses,and others Contributing to Medical Safety Medical to and Contributing Healthcare of Development Skill ing its partnership with customers

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 11

Automated Blood Collection System High concentrations of platelets can be collected in a short time . . Platelets play an espe- . It allows blood centers to collect the right blood products at the right . This is especially important when a critically ill patient needs a specific blood compo- . Terumo’s automated blood collection system is a technologically advanced, efficient way Terumo’s of collecting platelets complication nent, as many cancer patients do when they suffer blood loss due to a surgery, or platelet loss due to chemotherapy time through Healthcare through Contributing to Society to Contributing ersonnel P arketing Since a reduction in platelets increases the risk of hemorrhage Since a reduction in platelets increases the . M a Social and Environmental Report 2012

from

. omment C Needed around the World Contributing to the Transfusions Feature Report: Report: Feature and makes bleeding difficult to stop, platelets need to be supplemented through transfusion and makes bleeding difficult to stop, platelets Terumo offers its automated blood collection system for the efficient collection of platelets offers its automated blood collection system for the efficient collection Terumo during blood donation, which helps blood centers better meet the needs of patients receir- ing transfusions Cancer Patients anti-cancer drugs or radiation therapy is a One of the side effects of chemotherapy using blood cells and platelets reduction in blood components such as red Transfusion Medicine Supporting Medicine Transfusion cially vital role in hemostasis

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 12 Epidermis Dermis Hypodermis Another role . Approx . 2mm . Cross-section of the skin Dermis, where immune system cells are highly concentrated

- s intradermal injection One of my roles is to develop a device that provides reliable injections in the .

. I began developing intradermal injection devices by focusing on the enhancement of vaccine effectiveness is to work through the entire development process together with pharmaceutical companies, including evaluation on the enhaucement of vaccine effectiveness thin parts of the skin, and is people-friendly in that it doesn’t hurt or evoke fear thin parts of the skin, and is people-friendly in that it doesn’t Reducing the amount of vaccine that is injected Reducing the amount of vaccine that is injected . through Healthcare through Contributing to Society to Contributing With pharmaceutical company, DAIICHI SANKYO COM With pharmaceutical company, ngineer . N R&D E a Social and Environmental Report 2012

. from

omment C Injections Contributing to Healthcare through the Development of Intradermal These efforts contribute to the development of vaccines with broad applications from . LIMITED, we are co-developing a new vaccine utilizing Terumo’ Feature Report: Report: Feature . Terumo has developed an injection device that makes vaccination more effective by allowing has developed an injection device that makes vaccination more Terumo er person allows more people to be vaccinated device prevention to treatment p Vaccine Injections Vaccine infectious diseases and harness the immune The development of new vaccines to prevent system to fight cancer has been advanced Greater Effectiveness of Greater Effectiveness a small amount of vaccine to be injected intradermally (just beneath the skin), where immune system cells are highly concentrated PANY

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 13 I previously . Lifting up the toe of the .

Stumbling-preventive socks Unique elastic fabric naturally lifts the toe Walking is an extremely important exercise, as it helps Walking .

. .

felt that it was easy to walk as long as shoes fit properly, but socks are also an extremely felt that it was easy to walk as long as shoes fit properly, important factor As people age their toes naturally droop, increasing the risk of stumbling on even an only slightly uneven surface or falling prevent osteoporosis,which lessens the likelihood of broken bones foot will allow people to walk without falling, and help them avoid broken bones . through Healthcare through Contributing to Society to Contributing Social and Environmental Report 2012 . INTERVIEW Broken Bones Lessening the Risk of Falls Also Helps to Avoid Luke’s International Hospital Luke’s . Shigeaki Hinohara,M.D. Chairman of the Board of Trustees, St Feature Report: Report: Feature Socks that lift the toe make it less likely that a person will stumble . Muscle strength declines with age, making people more prone to stumble or fall, A broken bone as a result of a fall is one of the reasons the elderly become bedrid- of is helping the elderly live vibrantly and healthily through the prevention Terumo and this anxiety leads them to avoid going out den injury or illness Fear of Falling Helping the Elderly Walk without without Walk Helping the Elderly

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare 14 In-house power generation facility at the Ashitaka Factory The interventional systems products . In-house power generators for emergency use will allow production to continue following a disaster

- . To maintain To . . Last year’s disaster reaffirmed the importance of the role that Last year’s . ” . actory F

. Medical Care ection S

. We will keep a firm resolve to persevere should another catastrophe strike, and make a will keep a firm resolve to persevere should another catastrophe strike, and We we play The mission of the maintenance section to which we belong is to maintain a stable energy supply and work environment necessary for production concerted effort as a team to continue our maintenance activities in order to “contribute to society through healthcare and oxygenators made at our factory are used at medical facilities throughout the world, so production cannot be stopped aintenance through Healthcare through Contributing to Society to Contributing M of

We also decentralized our production facilities domesti We . personnel Social and Environmental Report 2012

from

omment C Maintaining a Stable Supply Feature Report: Report: Feature Our mission is to “never allow a disruption in medical care” by maintaining a stable supply Our mission is to “never allow a disruption in have implemented various measures based on this resolve We - At our Japanese factories we installed gas engine-based in-house power generators to supple of products to healthcare providers around the world ment the power supply and ensure that the production process continues to operate Terumo reaffirmed its mission as a company in the wake of the Great East Japan Earthquake reaffirmed its mission Terumo Never Allow a Disruption in Never Allow a Disruption Earthquake —the Great East Japan our logistics network we dispersed our customer service centers, warehouses and data centers between the Kanto and Kansai regions cally and overseas, and took other measures to ensure a stable supply structure

Social and Environmental Feature Report: Contributing to Report 2012 Society through Healthcare . 15 We will We . . . . We consider these and all other consider We . Communities Customers Associates We are committed to promoting the spread of are committed to promoting We better healthcare experience by giving due consideration to the lifestyles and environments of the communities we serve We offer our customers, including healthcare offer our customers, including We professionals, patients and retail customers, safe and high-quality products and services by maintaining closer communications with them enable each create work environments that We associate to take maximum advantage of his or her abilities, and train our associates with the skills that will enable them to be active participants on the global stage . . Social and Environmental Report 2012 Together with Stakeholders Together Terumo’s Stakeholders Terumo’s Business Partners Shareholders Treating our business partners as Treating strategic partners, we work together to ensure that we conduct our busi- openly and in compliance ness fairly, with all laws and regulations We are committed to continually are committed to continually We improving our shareholder value, through open management and fair and honest business practices Terumo’s business activities are supported by a range of different people in different roles are supported by a range of different business activities Terumo’s people who interact with or are affected by Terumo, including the people who use our products, to be our stakeholders including the people who with or are affected by Terumo, people who interact as we grow with them in the future close communications with our stakeholders continue to maintain

Social and Environmental Together with Stakeholders Report 2012 16

. . . . By direct and close communication with our customers, we By direct and close communication with our ensure that our customers can use our products with peace of ensure that our customers mind seeks to contribute carry out our business activities in a way that and services to healthy living through product development We We . Social and Environmental Report 2012 . Together with Customers Together Communication with Our Customers Chart Communication with Our Customers We Value Communication with Customers Communication Value We At Terumo, we believe our role is to accurately understand we believe our role At Terumo, Terumo’s customers include healthcare professionals, patients, customers include Terumo’s about their and other general consumers who are concerned health value to them customer needs to develop products of real We believe that Terumo’s role and responsibility is to support healthcare by providing safe, high-quality products and services support healthcare by providing safe, high-quality role and responsibility is to that Terumo’s believe We place equal importance on providing information and support to place equal importance on providing information Maintaining open and honest communication with our customers forms a part of that responsibility honest communication with our customers Maintaining open and

Social and Environmental Together with Customers Report 2012 TM 17 Inquiries are addressed by staff with specialized knowledge Supporting medical training at Terumo Medical Pranex Supporting medical training at Terumo Transparency Guideline for the Relation between Transparency Corporate Activities and Medical Institutions To gain wide understanding of Terumo’s contribution to life contribution to life of Terumo’s gain wide understanding To with high ethical science, and that its activities are conducted Guideline for the standards, we formulated own “Transparency Institutions.” Relation between Corporate Activities and Medical in FY 2013 will disclose informa- Terumo Guided by this policy, institutions and tion on its record of providing funds to medical of its business healthcare professionals during the course activities. Social and Environmental Report 2012 We have also formulated and strive for . We Terumo Call Center Terumo Compliance with The Promotion Code Ensuring appropriate use of medical devices and medical devices and appropriate use of Ensuring products pharmaceutical Listening to Customers Providing Information to Ensure Appropriate Use to Ensure Appropriate Information Providing MR stands for Medical Representatives, Terumo associates who provide information associates who provide Terumo MR stands for Medical Representatives, to medical institutions The Terumo Call Center in Japan receives about 300 thousand The Terumo calls per year from general consumers, medical institutions and ensure that inquiries related to respective classes distributors. To of our products, ranging from those designed for medical institutions to those for home medical care, are addressed promptly they are responded to by call center staff with and appropriately, expertise in the particular field. Our call center staff are committed to maintaining and improving the level of satisfaction of all callers and to ensuring that urgent inquiries, such as those related to patients receiving healthcare at home, are responded the center is enhancing its to around-the-clock. Additionally, mechanism for internally reflecting customer feedback in the improvement of existing products and the development of new products. Terumo complys strictly to the promotion code of the Medical complys strictly to the Terumo rules for ensuring a set of voluntary industry Devices Industry, are promoted that medical devices and pharmaceutical products in an appropriate manner compliance with the “Terumo’s own promotion code,” designed compliance with the “Terumo’s promote ethically to help us meet our social responsibilities and driven business practices. * Terumo MRs* gather and swiftly provide accurate information to MRs* gather and swiftly provide accurate Terumo a bid to ensure the appropriate, effective medical institutions in devices and pharmaceutical products. and safe use of medical, for the Medical Pranex, a comprehensive center At Terumo offers a range professionals, Terumo technical training of medical such as interventional treatment, of support training in areas of blood samples. injections and the taking

Social and Environmental Together with Customers Report 2012 18 The MediSafe Fit blood glucose monitoring system designed to be easy for patients to use Providing support for training healthcare professionals Providing support for training healthcare professionals on how to use medical devices accurately

. The . For

. . Using this information, we Using this information, . . solution sets, Terumo conducts conducts solution sets, Terumo . . V Social and Environmental Report 2012 . . . These innovations make it easier for patients . ” At the Annual Congress of the Japanese Society ” At the Annual Congress of the Japanese Society . Providing easy-to-use products and services Supporting medical institutions’ training Supporting medical institutions’ training programs Medical safety information management in Japan information Medical safety Reflecting Customer Feedback in Our Products Feedback in Customer Reflecting Furthermore, we use the accumulated information to develop Furthermore, we use the Universal design font: A letter font meticulously designed specifically with ease of use and visibility in mind T-PAS: Terumo Proactive Action for Safety, training programs based on Terumo’s training programs based on Terumo’s Proactive Action for Safety, Terumo T-PAS: predictive safety measures -PAS training in which participants simulate the critical incidents training in which -PAS

The feedback we have received from healthcare professionals The feedback we have received from healthcare the who have completed the training includes: “Simulating aware of how seri- actions that lead to medical errors made me not rely solely ous the risks are” and “I realized that I should given by my upon my own assumptions or the verbal directions supervisors * Terumo incorporates the science of ergonomics into many of its Terumo products to allow people to operate them safely and easily Conducted on-site at medical institutions, the training is designed Conducted on-site at medical institutions, the incidents occur to help participants better understand how such curved device tip of advanced age or those with diabetes complications to draw blood samples by their limited eyesight or quivering fingers for Quality and Safety in Healthcare, seven hospitals from across for Quality and Safety in Healthcare, seven hospitals Japan reported on this training warned and described on the attachment inserted in package warned and described on the attachment inserted the MediSafe Fit blood glucose monitoring system, for example, movement and designed a we have analyzed the patient’s meanwhile, employs a universal design font* for device display, improved readability In order to prevent medical errors associated with medical In order to prevent medical errors associated devices like syringes and I T * and improve products and support medical safety training for and improve products medical institutions (T-PAS*) We accumulate information that we receive from our customers accumulate information that We and appropriate use of our products at our safety on the quality, Dept Safety-Related Information promptly develop and fine-tune our communications and deliver promptly develop and methods, including attaching important them via a number of disseminating information on our Web information to products, and sending MRs to medical site or via industry organizations, face-to-face explanations institutions to provide

Social and Environmental Together with Customers Report 2012

19 .

, is the basis of our , is the basis of our Terumo Corporation Terumo Strict quality control at a factory In this way, policies devised by top management are In this way, . . . ) and . . , Ltd . , which is an 2 The customer’s perspective, referred to first in our Quality Policy The customer’s . We are now stepping We . . standard 1 Social and Environmental Report 2012 We also keep up to date with develop- We . s Pharmaceutical Affairs Act as well as . In anticipation of new trends and requirements, In anticipation of new trends and requirements, . pursue products valuable for our customers; understand our own roles in the quality system and practice them, and always review and improve our ways of doing business

In order to deliver safety and reliability to healthcare fields, we shall • • • Quality Policy At Terumo, all associates (employees) are committed to improving the quality of our products and services to enable and services the quality of our products to improving (employees) are committed all associates At Terumo, . . . Quality policy aimed at safety and security Quality assurance system that meets international Quality assurance standards Quality initiatives for safe and reliable products safe and reliable initiatives for Quality Terumo obtained certification for ISO 13485* obtained certification Terumo Pharmaceutical GMP: Guidelines for the manufacture of pharmaceutical products Pharmaceutical GMP: Guidelines for the manufacture of pharmaceutical quality aspects of the issued by the regulatory authorities to ensure the safety and from the receipt of products comply with the specifications throughout all phases, materials to manufacturing and shipment of products devices and ISO 13485: An ISO standard to assure the quality of medical equipment

2 1 * up efforts to develop our quality management system to be up efforts to develop our quality management global requirements robust enough to meet ever-stricter Each division also sets Quality targets based on these quality policies incorporated into individual associates’ targets Our top management sets up quality policies to develop and operate our quality management system and maintain its effectiveness Our top management sets up quality policies to develop and operate our quality management quality assurance * our customers to use our products safely and with peace of mind our customers to use established a quality management system Since 1995, when we medical device directives, we have in response to European system with the advanced quality blended the global-standard on the existing pharmaceutical GMP assurance system based (Good Manufacturing Practice)* Maintaining quality is an important responsibility for companies involved in healthcare and is the foundation of Terumo’s corpo- the foundation of Terumo’s in healthcare and is companies involved responsibility for quality is an important Maintaining rate value we are striving to continually improve our quality management we are striving to continually improve our quality system ments regarding Japan’ regulatory trends and requirements for medical devices/equip- regulatory trends and requirements for medical Japan, including ment and pharmaceutical products outside of which the EU Medical Device Directives, US FDA regulations, tightening regula- have been strengthened in recent years, and global tions in emerging countries in response to accelerating harmonization international quality standard for medical devices and equipment, international quality standard for medical devices Ashitaka Factory, at its five domestic sites (Fujinomiya Factory, Clinical Supply Co Terumo R&D Center, Kofu Factory, 16 sites outside of Japan

Social and Environmental Together with Customers Report 2012 20 Technology exchange meeting with overseas associates Technology The . . . Social and Environmental Report 2012 The results are reported to our top manage- The results are reported . . In addition, we undergo several external audits each In addition, we undergo . Strict quality control at facilities outside of Japan Strict quality control at facilities outside Auditing system to maintain high quality system to maintain Auditing As these exchanges increase, factories outside of Japan As these exchanges increase, factories outside . Initial quality assessment is a system designed to reaffirm the quality and product Initial quality assessment is a system designed to reaffirm when shifting to specifications of new products, from the customer perspective, mass production

* have also begun introducing Shoki Ryudo (initial quality assess- have also begun introducing Shoki Ryudo (initial Japan ment*), an evaluation method developed in As the role played by our factories outside of Japan increases in As the role played by our factories outside of Japan with the importance, we provide associates outside of quality, know-how we have cultivated in Japan for improving system-related while we, in turn, learn much from them about and standardiza- aspects, including systematic ways of thinking tion year to prove that we meet various regulations ranging from the year to prove that we Act to international regulations expanding Pharmaceutical Affairs world, as well as individual demands from Europe to the entire from our corporate customers To maintain and improve quality, we implement internal audits implement internal audits we quality, maintain and improve To our quality management evaluate whether that objectively with and operated appropriately complied system is being prede- who have met by trained associates audits are conducted termined standards which are then incorporated, ment, who direct improvements upgrade our quality management allowing us to continually system

Social and Environmental Together with Customers Report 2012 21 . . . In addition, Terumo strives to provide strives to In addition, Terumo . Results Briefings Annual General Meeting of Shareholders Our basic policy for profit allocation is to stably increase divi- Our basic policy for profit fairness and continuity dends to shareholders in accordance with business performance, dends to shareholders long-term dividend payout ratio of 30% targeting a medium to which may be timely and proactive disclosure of information of the Company effective in providing a better understanding . A video . We believe We . In these . .

At the meeting venue, we also . . Social and Environmental Report 2012 The Company’s representative directors and The Company’s . Materials provided at the briefings, along with . Together with Shareholders and Investors with Shareholders Together Results Briefings General Meeting of Shareholders Communicating with Shareholders and Investors Communicating with Shareholders Basic Policy Regarding IR (Disclosure) Basic Policy Regarding Shareholder Returns Basic Policy Regarding individual presentations, are also posted on our website, and are available to all of our investors other key associates attend the briefings, and explain business results, factors behind any changes, and management strategy going forward Results briefings are held for securities analysts and institutional investors quarterly featuring commentary from customers and associates (employ- efforts to realize its corporate mission is also ees) on Terumo shown prior to the meeting create a display section for our products so that shareholders can view our medical devices and equipment up close ways, we strive to impart a deeper understanding of Terumo At our Annual General Meeting of Shareholders, we not only present our financial results but also explain how our products and technologies are contributing to better healthcare In its aim to be widely trusted by society, Terumo discloses Terumo In its aim to be widely trusted by society, rules set information in accordance with the timely disclosure Act and the forth by the Financial Instruments and Exchange on principles of transparency, Stock Exchange, based Tokyo this serves the interests of our shareholders, and will lead to this serves the interests of our shareholders, increased investment value To ensure higher profitability and sustainable growth, Terumo Terumo higher profitability and sustainable growth, ensure To aggressive reinvestment of profits actively promotes appropriate, corporate value even further as we work to expand To provide stable returns to its shareholders through improved corporate value, Terumo is committed to open management is committed Terumo through improved corporate value, provide stable returns to its shareholders To shareholders and investors disclosure and communication with our through fair and timely

Social and Environmental Together with Shareholders Report 2012 and Investors 22 IR Festa Published for shareholders twice annually The Terumo Letter is also dis- The Terumo . Social and Environmental Report 2012 . . We are also active in exhibiting at IR events in exhibiting at IR events are also active We . okyo Stock Exchange and others targeting individual Exchange and others okyo Stock To enable investors who may not be familiar with enable investors who may To . . IR Website Terumo Letter (Shareholder newsletter) Letter (Shareholder Terumo Briefings and Events for Individual Investors and Events for Individual Briefings erumo to deepen their understanding of the Company, we also Company, erumo to deepen their understanding of the offer a section of the website called “A Beginner’s Guide to offer a section of the website called “A Beginner’s only), which provides a straight- (currently in Japanese Terumo” strengths, philosophies, forward introduction to the Company’s and growth strategy T Through its investor relations (IR) website, Terumo delivers infor- Through its investor relations (IR) website, Terumo including back- mation needed by shareholders and investors, disclosure ground on the Company and various types of documents Twice a year, shareholders are sent the Terumo Letter, a newslet- Letter, are sent the Terumo shareholders a year, Twice about business results, growth ter that provides information and so on strategies, dividends, held by the T held by the IR events for individual investors, as part tributed at briefings and deeper understand- of our efforts to help those investors gain a ing of the Company To provide an opportunity for direct dialogue with its individual with its individual for direct dialogue provide an opportunity To for them at locations holds company briefings investors, Terumo Japan throughout investors

Social and Environmental Together with Shareholders Report 2012 and Investors - 23 ” Our choice . . . At the same time, we continue to pro- . Guided by this experience, we are working in Guided by this experience, we are working . Based on these ideas, we maintain fair and equitable relation- Based on these ideas, collaboration with our partners to ensure Terumo has an even collaboration with our partners to ensure Terumo more stable procurement framework in place ships with our suppliers regulations cure raw materials in compliance with pharmaceutical and rules in the respective countries concerned customers, Terumo ensure continued delivery to our healthcare with the under succeeded in securing the raw materials needed, allow a disruption standing of our partners that we should never in medical care . With these guidelines, we are . Social and Environmental Report 2012 Nevertheless, driven by a commitment to . . Together with Suppliers Together With the rapid changes in the environment for raw material With the rapid changes in the environment . Initiatives in raw material procurement Raw material procurement policy Raw material The Great East Japan Earthquake of 2011 brought disruptions The Great East Japan Earthquake of 2011 brought Selecting materials that can be used effectively and produce Selecting materials that can be used effectively no waste (saving resources) Selecting materials that won’t produce harmful impacts for the produce harmful impacts Selecting materials that won’t next generation (reducing environmental impact)

procurement, we place top priority on ensuring quality and stable procurement, we place top priority on ensuring appropriate sources supply and procure materials from the most practice to provide high-quality products to healthcare to our supply chain Terumo manufactures products in five factories within and 18 manufactures products Terumo in over 160 coun- factories outside Japan, and distributes them tries of raw materials reflects our commitment to enable patients and healthcare professionals to use our products safely and with healthcare professionals to use our products our commitment to enable patients and of raw materials reflects peace of mind our “Human x Eco Development In October 2009, we developed being a people- and Guidelines” in line with our commitment to environment-friendly company and environment- making an effort to reach a new stage of people- given to thefriendly procurement, with particular consideration following: • • Terumo procures raw materials based on our corporate philosophy of “Contributing to Society through Healthcare on our corporate philosophy of “Contributing procures raw materials based Terumo

Social and Environmental Together with Suppliers Report 2012

24 . . . . Internal Purchasing Compliance Training Internal Purchasing Compliance Information on audits and on the quality of materials is . When necessary, we also meet directly with partners who we also meet directly When necessary, to ensure they understand the impact the quality of materials can have on the quality of the final product, and to gain their cooperation in perpetual quality improvement and with our system audits have provided their opinions and work to further improve our have provided their opinions and work to further mutual trust relationships shared between our factories, as we work to improve the quality of the materials we purchase from our partners partners, the Company analyzes the issues facing its materials partners, the Company analyzes the issues facing materials divisions division and provides feedback to its factory issues, but serves The feedback not only aids in resolving those customer as a tool for verifying the direction of, and reflecting input in, our material procurement going forward During . Beginning in . .

. erumo is working to enhance Terumo works with its partners Terumo . . In addition to building awareness of In addition to building . Social and Environmental Report 2012 rade Commission and the Small and rade Commission and Based on the responses and opinions from our Based on the responses and opinions from . to Subcontractors (abbreviated in this document to Subcontractors (abbreviated . . Promoting Material Quality Improvements Supplier Surveys Purchasing Compliance Education Compliance Purchasing The Global Harmonization Task Force (GHTF), an international The Global Harmonization Task The survey includes a wide range of questions involving their The survey includes a wide range of questions In addition, Terumo promotes and encourages understanding promotes and encourages understanding In addition, Terumo conference aimed at promoting greater uniformity between national device regulatory systems, has developed guidelines for enhancing supplier management To further improve product quality, T further improve product quality, To quality control over purchased materials transactions with Terumo, including our business manners, trans- including transactions with Terumo, actional ethics, and how we select our materials interruption to 2011, to ensure stable procurement without continuity healthcare, we added a survey regarding business planning (BCP) Each year Terumo conducts a survey of its suppliers to make conducts Each year Terumo a trusted company further improvements and ensure we become for our suppliers of row materials Medium Enterprise Agency, both government institutions Medium Enterprise Agency, our internal controls, we also work to maintain and improve our internal controls, we Law compliance with the Subcontracting with the Act, the month the government promotes compliance verify compliance we run a series of checks and interviews to an understand- status, and work to thoroughly instill and reaffirm as the parent ing of key points of compliance for Terumo company of Japan’s Subcontracting Law by actively participating in work- Subcontracting Law by actively of Japan’s T shops held by the Fair As part of ensuring good mutual communications with our suppli- communications with good mutual As part of ensuring basic rules for suppliers, its employees on its briefs ers, Terumo ordering, and payment, and con- including Supplier selection, that all employees are familiar with and ducts training to ensure Delay in Payment of Subcontract understand the Act Against Proceeds, etc Law) as the Subcontracting

Social and Environmental Together with Suppliers Report 2012 25 ” Our .

. . Recruiting logo for the ACE in-house recruiting system A successful ACE applicant working in India . Our goal, based on these various initiatives, is to Our goal, based on these various initiatives, . fields of activity have each of our associates contribute their individual strengths have each of our associates contribute their and creating to the strength of the team, enhancing performance a strong, vital workplace . We also provide ample We . Social and Environmental Report 2012 To date, 24 candidates have passed date, 24 candidates have To .

. Together with Our Associates with Our Together Recruiting targets cover a broad span, from highly special- Recruiting targets cover a broad span, from . ACE In-House Recruiting System At the Terumo Group, we believe that our true corporate value lies in our employees; in short, in the sum value of our our true corporate value lies in our employees; Group, we believe that At the Terumo Since its founding, the Terumo Group has worked to fulfill its mission of “Contributing to Society through Healthcare has worked to fulfill its mission of “Contributing Group Terumo Since its founding, the Fostering a Motivating and Challenging Work Climate Challenging Work Fostering a Motivating and In FY 2011, there were approximately 50 applications, with 10 individuals passing the screening process and winning a chance to perform in a new area of opportunity opportunities for those with a willingness to grow to widen their opportunities for those with a willingness to an in-house recruiting system has operated In Japan, Terumo from a wide called “ACE” since 1997, which enables associates pursue the jobs they range of departments and job categories to want built primarily ized product sales positions to marketing projects around female associates recruiting began screening for overseas assignments since global been transferred to in 2007, and over half of them have already positions overseas At Terumo, we respect the individuality of our associates, while we respect the individuality At Terumo, individual can working to foster a work climate in which each realize his or her maximum potential associates At the Terumo Group, we call our employees “associates,” and each one of them is expected to play a key role in the Group by is expected to play a key role in the “associates,” and each one of them Group, we call our employees At the Terumo their own professional development and taking responsibility for thinking and acting independently associates are an important asset in achieving that mission, and our goal is to enable them to realize their maximum potential our goal is to enable them to realize their asset in achieving that mission, and associates are an important play a leading role in which they can each grow to while providing an environment

Social and Environmental Together with Our Associates Report 2012 26 (Employees) 5,048 1,837 5,177 6,050 18,112 FY2011 . 4,962 1,732 2,341 5,726 14,761 FY2010 , the diversity of our associates is the engine that will , the diversity of our associates is the engine Winners of the “Gemba-no hokori” Award in FY 2011 hokori” Award Winners of the “Gemba-no 4,823 1,654 2,165 5,098 13,740 FY2009 We also have We . . Social and Environmental Report 2012 The winners were selected from a field The winners were selected . Through acceptance of a wide range of values, and mutual recognition of our respective cultures, we are aiming to Through acceptance of a wide range of values, . ward (“Honor of the Frontline” Award) presented Award) ward (“Honor of the Frontline” . “Gemba-no hokori” Award “Gemba-no We reward and recognize such associates with the “Genba- such associates reward and recognize We . Taking Advantage of Diversity Taking Japan Europe Americas Asia, other Total In FY 2011, the award was presented to six associates, In FY 2011, the award drive our growth Number of Employees by Region (Consolidated) At the Terumo Group, we believe that regardless of gender, age, or nationality that regardless of gender, Group, we believe At the Terumo and knowledge can intermingle unfettered, creating new value become a company in which differing ideas of about 90 peer-nominated candidates of about 90 peer-nominated each year Terumo’s growth is not solely supported only by those associates only by those associates is not solely supported growth Terumo’s record high-profile performance with the most no hokori” A in charge of factory facility maintenance including an associate of supporting patients in the use of and an associate in charge medical devices at home many associates who work diligently behind the scenes every behind the scenes who work diligently many associates day

Social and Environmental Together with Our Associates Report 2012 27

By continually By continually . FY 2011 Women’s Forum FY 2011 Women’s erumo Australia associates we are able to develop an in-depth erumo Australia associates we are able to develop an in-depth I work with a talented group of Terumo Associates within this I work with a talented group of Terumo . .

. erumo in

One measure . . enhancing the skills of all T understanding of our customers and create plans that continue to support our customers in a changing environment by providing products and solutions that make medical treatment kinder and gentler I am responsible for the development and implementation of business plans that support I am responsible for the development and implementation of business plans that support Mission of Contributing to Society Through Healthcare with a focus on achiev- the Terumo ing our sales, gross profit and growth targets in Australia and New Zealand, a market that serves 26 million people region and my primary motivation comes from being able to support and develop the organizational team and support individual associate learning and development s mentoring system . Social and Environmental Report 2012 Feedback from Female Associates Active Overseas

Sales and Marketing Manager— Australia Pty Limited Terumo . Promoting Active Participation by Female Female by Participation Active Promoting Employees To put in place the environment, climate, and awareness that and awareness that environment, climate, put in place the To Terumo has adopted to address some of the issues that have has adopted to address some of the issues Terumo of a women’ been raised is the creation In Japan, as part of our efforts to recognize diversity and tie it to recognize diversity and part of our efforts to In Japan, as to committed itself top management Terumo’s corporate growth, in the workplace activity of women promoting the nationwide, at which forums of women’s FY 2011 held a series can discuss how to resolve existing issues our female associates careers for women and exchange ideas regarding associates the opportunity to raise Giving more of our female skills, and increasing the number of their own awareness and roles into organizational leadership, will, women expanding their to the creation of new points of view and we believe, contribute new values will best enable women to perform in the workplace, T will best enable women

Social and Environmental Together with Our Associates Report 2012 28

. - .

. . FY 2011 Global Challenge FY 2011 LEO Seminar Based on our belief that the most effective learning comes effective learning comes belief that the most Based on our from having one’s own interests and understanding the impor and understanding the own interests one’s from having training programs in Japan of Terumo’s tance of learning, many out of individual suggestions have developed spontaneously This . . .

. . erumo Americas Holding, for example, utilize e-Learning to provide an efficient environment for training associ- erumo Americas Holding, for example, utilize e-Learning to provide an efficient environment for Social and Environmental Report 2012

. , they cultivate an understanding of differing , they cultivate an understanding of differing ] Thirty associates in their 20s through 40s are Thirty associates in their 20s through 40s are . opics Terumo BCT and T Terumo Efforts to Utilize e-Learning [T This was followed by a debate session that saw partici- This was followed by a debate session that At the same time, the Group as a whole must have a set of values and basic practices which we all observe in common At the same time, the Group as a whole must have a set of values and basic practices which Even within the Terumo Group, human resource development context and conditions may vary from one region or company to another Even within the Terumo ates in the Code of Conduct of the Terumo Group (called “SAKURA”), and for management training ates in the Code of Conduct of the Terumo . Global Human Resource Development Global Human Resource Enhancing the Value of Each Individual the Value Enhancing After hearing lectures on global career options, participants After hearing lectures on global career options, Human resource development is based on practical skills Human resource development pants compete with one another on their reasoning skills and the pants compete with one another on their reasoning persuasiveness of their arguments values, hold all-night group discussions on management issues, values, hold all-night group discussions on management team and present a business plan to our management Global Challenge in Japan implemented In FY 2011, Terumo learn business skills program is an opportunity for participants to applications from applicable to the global arena, and is open to a plan to work associates demonstrating a strong desire and overseas in the future hope to offer to the presented their own vision of the value they world Global Challenge LEO Seminar LEO Seminar is designed to develop individu- In Japan, Terumo’s are capable of als with a global approach to management who leading change selected from a pool of about 100 applicants, and through the selected from a pool of about 100 applicants, seminar four-month With the coming push toward greater globalization, developing With the coming push resources with both the diverse com- highly motivated human to understand other cultures and leader- munication skills needed Group Terumo ship capabilities is an important policy for the Terumo believes that its true corporate value lies in the collective value lies in the collective that its true corporate believes Terumo for the Company associates who work worth of all acquired through on-the-job training (OJT), and a variety of train- acquired through on-the-job to supplement OJT ing programs designed

Social and Environmental Together with Our Associates Report 2012 29 . Terumo continues to offer a number of initiatives to ensure to offer a number of continues Terumo health and safety in the workplace, both to prevent workplace both to prevent workplace safety in the workplace, health and the effects of industrial accidents when injuries and to minimize they do occur

. Going forward, we will continue . .

Social and Environmental Report 2012 . Information is shared through reports to To support better mental health as well support better mental health To . . With a goal of zero industrial accidents, efforts With a goal of zero industrial . Employee Health Management Occupational Health and Occupational Health Structure Safety Management Occupational Health and Safety Initiatives Health Occupational In FY 2011, there were 2 lost-workday industrial accidents, In FY 2011, there were 2 lost-workday industrial as physical wellbeing, we also offer a variety of lectures, includ- as physical wellbeing, we also offer a variety general employ- ing on stress management for new hires and and management ees, and on team member mental health care methods for leadership staff In Japan, to promote good health among its associates, Terumo associates, Terumo In Japan, to promote good health among its also encourages not only provides regular health checkups, but diseases, and employees to be screened for lifestyle-related individual health works with its health insurance union to provide management guidance to work toward a reduction in the number of industrial accidents, to work toward a reduction in the number of and our goal of zero serious accidents or deaths compared to 2 the year before To protect the safety of its associates in Japan, Terumo holds the safety of its associates in Japan, Terumo protect To health and safety management meetings of its occupational R&D headquarters, sales offices, and committee at its factories, head office include a 5S program, review of danger zones, and efforts to include a 5S program, prevent certain dangers the committee and others At the Terumo Group, we believe that providing a safe workplace a safe workplace we believe that providing Group, At the Terumo assets of associates, valued to ensuring that our is the first step maximize their potential can the Company,

Social and Environmental Together with Our Associates Report 2012 30 Terumo Health and Weather Forecast website (Japanese Health and Weather Terumo only) Terumo Body Temperature Research Institute website Body Temperature Terumo Raising awareness of the correct way to check body temperature

In . . On the . Our forecasts, . . . It provides information on body . Some 73% of respondents . The institute is also promot- . . In FY 2011, the institute held classes and s efforts include free classes and seminarss efforts include free classes and . Social and Environmental Report 2012 To ensure the role of body temperature in daily ensure the role of body temperature To . Forecasts feature information gathered from 48 Forecasts feature information gathered from . . . Social Contribution Activities Contribution Social Terumo Body Temperature Research Institute Temperature Body Terumo Terumo Health and Weather Forecast™ Health and Weather Terumo Providing information to manage health Providing information In 2010, Terumo started to provide information on body tempera- In 2010, Terumo The institute’s Japanese-language Web site provides extensive Japanese-language Web The institute’s Firmly based in biometeorological science, the Terumo Health and Terumo Firmly based in biometeorological science, the According to a survey conducted by Terumo to gauge awareness According to a survey conducted by Terumo temperature and proposes lifestyle adjustments for improved health The Terumo Body Temperature Research Institute is Terumo’s research institute devoted to Research Institute is Terumo’s Body Temperature The Terumo health studies from the perspective of body temperature

* education side, the institute’ ing lifestyle improvement by taking part in a project for children on the ture in China by organizing lectures by Japanese doctors and launch- health ing a website on women’s information on body temperature, including in relation to fever and heat stress as well the effects on different age groups, particularly the elderly and infants seminars at some 30 sites across Japan rhythms of everyday life initiated by the Japanese Ministry of Educa- and the national council tion, Culture, Sports, Science and Technology Breakfast campaign for the Early to Bed, Early to Rise, and Eat Your The familiar field of body temperature was the starting point forThe familiar field of body temperature was the as a company Terumo on the relationship between body temperature and the rhythms of everyday life for elementary and junior high schools students, parents and guardians, and teachers reported experiencing this phenomenon firsthand Body Temperature health maintenance remains relevant, the Terumo doctors, conductsResearch Institute*, in cooperation with specialist research on body temperature and related educational activities terms of research, the institute carries out surveys related to actual clinical thermometer use, along with investigations and academic presentations regarding body temperature measurement Weather Forecast has gained a strong following in Japan as a source Forecast has gained a strong following in Japan Weather diseases from developing of useful information that may help prevent or worsening based on unique calculation formulae and found on the Terumo web- on the Terumo based on unique calculation formulae and found pressure, migraines site, cover joint pain, heat stress, asthma, blood and other ailments times daily locations across Japan, and are updated three 81% of respondents of the relationship between health and weather, between weather and answered that they think there is a connection seasonal changes and their health status Terumo Health and Weather Forecast™ The Terumo Health and Forecast™ The Terumo Health and Weather Terumo forecast that also provides infor- Forecast is a daily weather Weather affect health weather may day’s mation about how the

Social and Environmental Social Contribution Activities Report 2012 31 Providing caring advice from the veterinary viewpoint New Health College Leg varicose vein seminar , , .

D . . Hiroko’s Animal Hiroko’s . With regard to . Luke’s College of Luke’s . The program has been on . ” With the aim of achieving a . Seminars were held in five loca- Seminars were held in . We provide a variety of informa- provide a variety We . . Luke’s College of Nursing have been College of Nursing Luke’s rustees of St . Social and Environmental Report 2012 Past lecturers include Shigeaki Hinohara, M . . Helpful information for pet health New Health College Seminars on leg varicose veins and lymphedema on leg varicose veins Seminars The seminars, which consist of easy-to-understand lectures lectures The seminars, which consist of easy-to-understand Clinic, a long-running radio program that provides fun and helpful Clinic, a long-running radio program that provides tips for pet owners and animal lovers among pet the air for nine years, a testament to its popularity owners Dr. Hiroko’s Animal Clinic radio program Hiroko’s Dr. Sundays from 2:40 to 2:50 pm on Nippon Cultural Broadcasting at 1134 kHz (in the Kanto area, Japan) Since January 2011, Terumo has sponsored Dr Since January 2011, Terumo Nursing delivered by prominent speakers, have been well received by well received by delivered by prominent speakers, have been participants lymphedema, which is primarily an after-effect of cancer treat- of cancer primarily an after-effect lymphedema, which is of its symptoms and causes and the ment, we inform people importance of early treatment and St Since 2008, Terumo for the general jointly holding health support seminars in Japan public called “New Health College Chairman of the Board of T tions nationwide in fiscal 2011 tions nationwide in fiscal care of his or her society in which every person proactively takes health prob- own health, we are organizing seminars on familiar influenza lems, including lifestyle disease prevention and Terumo holds public information seminars in regional areas of in regional areas of information seminars holds public Terumo in the of both varicose veins at raising awareness Japan aimed suffers to alleviate symptoms and helping legs and lymphedema their progression and prevent tion about leg varicose veins, including causes and treatments, tion about leg varicose can be managed with compression and explain how symptoms way to wear them stockings and the proper

Social and Environmental Social Contribution Activities Report 2012 32 - In July 2012, . Further, in August of in August of Further, . . echnology (MIT) This year, we published a collection of inter This year, . Publication: Thinking About the Mysteries of Life . As part of education and awareness activities, in 2009, we As part of education and Langer will visit Japan for the award ceremony and to present Langer will visit Japan . okyo Women’s Medical University-Waseda University Joint Medical University-Waseda okyo Women’s Institution for Advanced Biomedical Sciences, where they will Institution for Advanced Biomedical Sciences, and robotic learn about the latest in regenerative medicine engineering the Massachusetts Institute of T the Massachusetts Institute Dr established prize (foundation prize) will a lecture, and the newly ceremony be presented at that same a life science DOKIDOKI Laboratory, established the Life Science aimed at junior and senior high school website (Japanese only) of students accessing the website is students, and the number growing every year under the title Thinking About the views with young researchers the Mysteries of Life, which was distributed to those involved in project and to high schools nationwide from Iwate, Miyagi, 2012, we plan to invite high school students affected by the Great and Fukushima prefectures, the areas most for them at the East Japan Earthquake, and host a science café T 2 billion in subsidies to a total 2 billion in subsidies to . . The winner of the 1st Terumo The winner of the 1st Terumo . Social and Environmental Report 2012 Robert Samuel Langer, professor at Robert Samuel Langer, . In March 2012, recipients came together to In March 2012, recipients came together to . Focusing on subsidizing and promoting Focusing on subsidizing . . FY 2011 ceremony to present research subsidies Terumo Life Science Foundation Life Science Terumo Contribution to the development of healthcare to the development Contribution In 2012, in commemoration of the 25th anniversary of the In 2012, in commemoration of the 25th anniversary In FY 2011, the foundation provided subsidies for three proj- In FY 2011, the foundation Global Science Prize is Dr attend an presentation ceremony Science Prize, a prize awarded to an outstanding researcher for Science Prize, a prize awarded to an outstanding medicine contributions to the growth of research in regenerative through biomaterials research of 825 projects Global we created the Terumo establishment, foundation’s ects under the special research subsidy category, including research subsidy category, ects under the special for transplanting complex MUSE cells development of a system in strokes; 22 projects under the with the goal of application the international general research subsidy; and 34 projects under exchange subsidy The Terumo Life Science Foundation was established in 1987, Life Science Foundation was established The Terumo reregistered as a public interest incorpo- and in April 2012 was rated foundation research, primarily related to life sciences, the foundation has research, primarily related ¥1 thus far provided approximately

Social and Environmental Social Contribution Activities Report 2012 33 While activities were . Exchange with graduate medical students from Zhejiang Exchange with graduate medical University . Illumination on the walls of the Terumo Shonan Center Illumination on the walls of the Terumo cheer to the hospice patients, their families and local residents cheer to the hospice patients, their families and has been carried out every year since cut to five days during the 2011 Christmas holiday season due to cut to five days during the 2011 Christmas holiday hospice were able restrictions on electricity usage, those at the to enjoy four different holiday illumination displays, including a Christmas tree The fund also . Following the com- .

. . in China’s Zhejiang in China’s . On Christmas Eve, it puts 2 million yuan . . , Ltd . Research grants and scholarships 400,000 yuan per year x three years = 1 2010 to 2012 Terumo Fund (second operation Fund (second operation Terumo period)

Social and Environmental Report 2012

estern medical traditions with a view to creat- estern medical traditions

This program was started in 1997 to bring Christmas . The Terumo Male Choir in action Male Choir in The Terumo Presenting an annual Christmas gift to a hospice Presenting an annual Christmas gift to Improving the quality of healthcare in China with in China healthcare quality of the Improving Fund the Terumo Name of Fund: Amount of Fund: Total Fund Operation Period: Outline of the Terumo Fund Outline of the Terumo Application: Contributing to the Wider Community Terumo Fund grants are given to support research investigat- Fund grants are given to support research Terumo In Japan, each year around Christmas time, a team of Terumo a team of Terumo In Japan, each year around Christmas time, Shonan Terumo volunteers decorates the outside walls of the Center building with Christmas lights on a fireworks display for the community and the hospice, while on a fireworks display for the community and Male Choir sings Christmas carols to the hospice the Terumo patients contributed to improving the quality of healthcare in China by contributed to improving to talented students providing scholarships period (from 2007 to 2009), the pletion of the first operation started in 2010 second operation period ing new types of medicine by fusing the two ing new types of medicine In 2007, to commemorate the 10th year of operation of Terumo Terumo year of operation of commemorate the 10th In 2007, to (Hangzhou) Co Medical Products in conjunction with Fund established the Terumo province, we of aim of bringing the benefits with the Zhejiang University, people as possible healthcare to as many ing Eastern and W

Social and Environmental Social Contribution Activities Report 2012 34 In-house Eco Cap initiative In FY . In addition to . . Social and Environmental Report 2012 Some examples of Terumo associates’ ongoing social contribution ongoing social contribution associates’ of Terumo Some examples . In FY 2011, we collected enough caps to provide polio vaccines to 660 In FY 2011, we collected enough caps to provide . . Blood donation Eco Cap collection initiative Local activities eekly cleanup of public roads and parks near the Head Office eekly cleanup of public Cleaning up the Tamagawa river bank, Tokyo (every spring and fall) river bank, Tokyo Cleaning up the Tamagawa joined) of Shonan Center (a total of 51 people Cleaning up the surroundings joined) of Fujinomiya Factory (a total of 69 people Cleaning up the surroundings of Ashitaka Factory and ME Center Cleaning up the surroundings joined) of sales branches (a total of 273 people Cleaning up the surroundings W Note: The participant numbers refer to activities held in FY 2011 Note: The participant numbers

2011, a total of 773 associates at 29 locations across Japan donated blood 2011, a total of 773 associates at 29 locations will continue to make blood supply-related social manufacturing blood bags, Terumo contributions by promoting further blood drives In-house blood donation Terumo carries out a blood drive at factories and branches every year in Japan carries out a blood drive Terumo Terumo in Japan is participating in the “Eco Cap” campaign organized by the NPO, Eco in Japan is participating Terumo bottles are collected and sold for recy- cap Movement, in which the caps of used drink buy vaccinations for children in developing cling, with proceeds from the sales used to countries children * • • • • • Terumo conducts many social contribution activities in local communities at our business at our business activities in local communities many social contribution conducts Terumo sites in Japan • through local activities are listed below: through local

Social and Environmental Social Contribution Activities Report 2012 35 . ) . Social and Environmental Report 2012 . blood pressure monitors pairs of compression stockings sets of nutritional rations clinical thermometers

4,000 In FY 2011, we donated 18,080 bottles (1000ml each) of saline solution to Thailand, which was hard-hit by flooding In FY 2011, we donated 18,080 bottles (1000ml 13,000 53,000 30,000 Local governments and nursing associations in Iwate, Miyagi, and Fukushima prefectures, the Japanese Red Cross Society, Cross Society, Fukushima prefectures, the Japanese Red nursing associations in Iwate, Miyagi, and Local governments and of Medical and Care Facilities, Japan Association of Geriatric Health Services Japanese Nursing Association, Japan Association and others Facilities, Japan Association of Chain Drug Stores, etc Others (disinfectant, masks,

. Disaster relief Relief efforts in disaster-stricken areas in disaster-stricken Relief efforts Donated to: Outline of relief efforts Earthquake million in following the Great East Japan and medical supplies worth a total of ¥240 Donated funds, assistance Medical supplies Terumo provides medical equipment, products, and other relief supplies to disaster-stricken areas facing serious shortages of such areas facing products, and other relief supplies to disaster-stricken provides medical equipment, Terumo items Terumo has donated funds, assistance and medical supplies worth a total of ¥240 million to areas devastated by the Great East by the Great East to areas devastated worth a total of ¥240 million and medical supplies funds, assistance has donated Terumo Japan Earthquake

Social and Environmental Social Contribution Activities Report 2012 36 . Presentation at an elementary school Presentation at an elementary . . . Team Terumo walkers Terumo Team erumo . . We also provide We . Called “Quick Start . Efforts include donations of Efforts include . . of India has continued to sup- of India has . Bake sale to support disaster recovery in Japan Social and Environmental Report 2012 Every year for 11 years, Team T Every year for 11 years, Team . . . Activities Overseas Activities has participated in JDRF’s annual walk for diabetic children has participated in JDRF’s Terumo Americas Holding, Inc./ Terumo Medical Corporation Terumo Foundation Co-sponsor of the Juvenile Diabetes Research International (JDRF) Terumo Italia Srl Terumo healthcare and basic supplies participate in the Italia ProNepal project, creating calendars and using the proceeds to provide We to children in Nepal Terumo Cardiovascular Systems Corporation Cardiovascular Systems Terumo Systems provides Cardiovascular walkathon, Terumo Cancer Society’s In addition to continued participation in the American donations of food and clothing to local communities MicroVention Inc. MicroVention In FY 2011, money raised through a bake sale was donated to support disaster recovery efforts in Japan donations of food and clothing to the local homeless These activities aid in improving the educational environment These activities aid in In 2009, we built a tennis court at an elementary school, In 2009, we built a tennis Tennis,” this program helps support local children through sports this program helps support local children Tennis,” Activities Worldwide companies overseas take part in social contribution Terumo activities in their respective regions for the region’s children, while increasing their opportunities to children, while increasing for the region’s participate in society Since 2005, Terumo Penpol Ltd Terumo Since 2005, for new as well as support and stationery supplies, books, bags, classrooms, labs, and restrooms facilities such as libraries, tournaments where we hold mini tennis port local public elementary schools port local public Terumo Penpol Ltd. Community Support Efforts Community Support Penpol Ltd. Terumo

Social and Environmental Social Contribution Activities Report 2012 37 erumo on forest development activities . Social and Environmental Report 2012 Feature: Initiatives for Biodiversity Conservation for Biodiversity Initiatives Feature: Annual (FY 2011–FY 2015) Roles Associates to assist with forest development activities Terumo: (forest owner): Collaborate with T Takekawa Mr. Shizuoka Prefecture: Disseminate information, provide advice and guidance, and issue certifications 1.65 ha (privately owned forest) in Fumoto, Fujinomiya City Activities to Perform maintenance (mowing, pruning, thinning, and planting) Woodland Duration of Agreement To protect and nurture the woodlands, which serve as a valuable source of water, at the base of Mt. Fuji, while deepening of water, protect and nurture the woodlands, which serve as a valuable source To relations with the local community Purpose Location of Activities Signing of Shizuoka Mirai-no-Mori Supporter Pact • • •

Overview of the Agreement • • Terumo Mt. Fuji Reforestation Project Terumo Prefecture, to become a supporter of the Shizuoka Mirai-no-Mori (Forest of the Future). On September 13, 2011, Terumo entered into a three-way pact with Mr. Masaki Takekawa, a woodland owner, and Shizuoka a woodland owner, Masaki Takekawa, entered into a three-way pact with Mr. On September 13, 2011, Terumo Terumo has two factories in Fujinomiya City in Shizuoka, Japan. Both take water from springs at the foot of Mr. Fuji for use in produc- Fujinomiya City in Shizuoka, Japan. Both take water from springs at the foot of Mr. has two factories in Terumo pharmaceuticals and other products. Since 2003, we have been undertaking the tion processes for medical devices and equipment, trees, of a Project to protect this area. As part of the project we conduct reforestation, with indigenous Mt. Fuji Reforestation Terumo - typhoon damage, helping the forest to become better resistant to future natural disas part of the Mt. Fuji forest that sustained heavy an underground water source. ters and ensuring it can continue to serve as In line with its commitment to biodiversity conservation, Terumo makes efforts for the development of a low-carbon, recycling-oriented makes efforts for the development of a low-carbon, Terumo In line with its commitment to biodiversity conservation, in which humans coexist with nature. society,

Social and Environmental Feature: Initiatives for Report 2012 Biodiversit Conservation 38 ha privately-owned woodland in the woodland ha privately-owned

Tree planting Tree The sign marking the Megumi-no-Mori. The tree planting was held at a later date, with project mem- The tree planting was held at a later date, with volunteer Beginning in FY 2012, we plan to have associates walks were also held, giving the participants the opportunity to walks were also held, giving the participants deepen their appreciation of nature. plant 200 sawtooth bers and some of the volunteers helping to trees. oak and quercus serrata and other broad-leaved other woodland for more tree planting and provide support for maintenance efforts. Now that we’ve signed the Shizuoka Mirai-no-Mori Supporter pact, I on developing the forest here. I’ve have started working with Terumo always maintained the woodlands on my own, but now Terumo’s employees, their always maintained the woodlands on my own, but now Terumo’s families, and the local junior high school students will all get involved, and I think we’ll have fun creating a bountiful forest together. Masaki Takekawa, Forest owner Forest Masaki Takekawa, Social and Environmental Report 2012 A walk in the Forest The signing ceremony. FY 2011 Initiatives Approximately 180 volunteers participated in forest development Approximately 180 volunteers participated in associates and their activities in October 2011, including Terumo the Fumoto region, families, and junior high school students from raining on the day of where the woodland is located. While it was that not everyone the tree planting, which unfortunately meant to a lecture by a could participate as planned, the group listened of Agriculture, covering University professor from the Tokyo environment and everything from a description of the natural Woodland wildlife around Mt. Fuji, to its history and culture. After an in-house call for suggestions, the name “Megumi-no-Mori” was selected for the 1.65 selected was the name “Megumi-no-Mori” call for suggestions, an in-house After Fumoto region of Fujinomiya City. Over five years beginning in FY 2011, Terumo will plant trees and implement other forest mainte- other forest will plant trees and implement in FY 2011, Terumo Over five years beginning of Fujinomiya City. Fumoto region nance efforts.

Social and Environmental Feature: Initiatives for Report 2012 Biodiversit Conservation ’s ’s 39 September August July In FY 2011, our keyword was “conserve electricity,” and electricity,” our keyword was “conserve In FY 2011, participation was up 50% from previous years, with 3,372 people years, with 3,372 was up 50% from previous participation activities in their everyday lives. More involved in conservation donations were also added. In addition to programs targeted for 2011 went to OISCA Forest Program, funds in FY the Children’s projects, including “Mori no Tsumiki disaster recovery support education through wooden blocks), Hiroba” (environmental place for children to play and free their designed to provide a restore the coastal forests of the Tohoku minds, and a project to by the Great East Japan Earthquake. region, which were hard-hit ■At Home ■At the Oﬃce Challenge Categories Extinguish lighting in unused rooms during lunch break Extinguish lighting in unused rooms during lunch air-conditioning units Set thermostat to 28℃ when using individual use Use stairs whenever possible and minimize elevator Disconnect main power for PCs and home, etc. other OA equipment during lunch, when returning Make copies and printouts only when necessary Frequently extinguish all unnecessary lighting when not in use Disconnect home electronics from main power Set home electronics to power-saving mode using Use sparingly, and set thermostat to 28℃ when Do not open frequently or overstock Social and Environmental Report 2012 Lighting Standby power Home electronics Air conditioners Refrigerators Lighting Air conditioners Elevators Standby power Energy conservation “Challenge Sheet” (excerpt) Children’s Forest Program Children’s Terumo’s “ECO Challenge” Volunteer Campaign Volunteer Challenge” “ECO Terumo’s For the campaign, participants are given “Challenge Sheets” For the campaign, participants The Children’s Forest Program encourages children to get The Children’s involved in greening activities to help them cultivate a love of nature and learn the importance of forests by nurturing seedlings on their school grounds and in their communities. Funds donated are used to provide environmental education to chil- by Terumo dren in the Philippines, to expand woodlands by planting and nurturing seedlings, and in other activities. Organization for Industrial, Spiritual, and Cultural Advancement- Organization for Industrial, a public-interest incorporated foundation. International (OISCA), Every summer in Japan, we implement a campaign called “ECO a campaign called in Japan, we implement Every summer associates and their in which volunteer Terumo Challenge,” variety of environmental conservation family members hold a at work. activities at home and categories to use for their own indepen- with specific eco activity part of its desire to benefit society through dent eco activities. As associates and scored the efforts of its the environment, Terumo into a monetary amount to be donated, converted those scores of success, to programs by the depending on the degree

Social and Environmental Feature: Initiatives for Report 2012 Biodiversit Conservation 40 Social and Environmental Report 2012 Project to Restore Coastal Forests Mori no Tsumiki Hiroba Mori no Tsumiki Coastal forests play an important role in preserving local living Coastal forests play an important role in preserving and as dampers conditions, acting as sand and wind barriers, due to the against tsunami. With the loss of coastal forests Earthquake, salt tsunami generated by the Great East Japan is growing worse by the day. damage along the coast of Tohoku intended to pro- The Project to Restore the Coastal Forests is the planting and mote expanded production of seedlings and project works nurturing of forestland. At the same time, the regions through toward the recovery of the disaster-affected new employment restoration of farmlands and the creation of opportunities. This program provides a place for children to play with blocks children to play with provides a place for This program to forests, and is designed wood thinned from local made from in and foster an interest creativity and cooperation, teach them these “Mori no Tsumiki The program provided our forests. by the Plaza) sites in regions affected Hiroba” (Mori no Tsumiki as a place for children to relieve Great East Japan Earthquake, of living as evacuees due to the disas- the stress and uncertainty wood, the children Surrounded by the smell of freshly cut ter. things with the blocks, and find a place to work together to build play with friends and with adult ease their stress as they participants.

Social and Environmental Feature: Initiatives for Report 2012 Biodiversit Conservation 41 Adopted in December 1999 activities aimed at protecting the global environment. Throughout activities aimed at protecting the global environment. business activities based on the Group, we conduct the Terumo assumption that the global environment must be protected. , Terumo supports and cooperates with environmental conservation activities. , Terumo Social and Environmental Report 2012 Ascertaining the environmental impact of our activities Developing environmentally friendly products Preventing pollution Making effective use of energy and resources Reducing waste Terumo abides by the environmental laws, ordinances, agreements and other legal provisions of all countries. abides by the environmental laws, ordinances, agreements and Terumo it promotes and audits those efforts. has established a system to facilitate environmental efforts and Terumo As a member of society and the community effort to increase its employees’ environmental conducts in-house informational and educational activities in an Terumo awareness. • • • • • Terumo sets voluntary targets and works to conserve the environment by: Terumo • • • •

• Promoting Environment-Friendly Business Activities Business Environment-Friendly Promoting Basic Environmental Policy under a fundamental policy of providing Guided by our corporate philosophy of “Contributing to Society through Healthcare,” and as a leading company by implementing responsible Group conducts itself safety and reassurance in medical care, the Terumo environmental conservation activities and striving to be a trusted corporate citizen. Sharing a Common Awareness of Environmental Preservation of Environmental Preservation Sharing a Common Awareness Policy under the Basic Environmental According to our corporate mission of “Contributing to Society According to our corporate mission of “Contributing Environmental through Healthcare,” we developed our Basic a leading company Terumo, Policy in 1999. Based on this policy, has since been engaging in a range of in the healthcare industry, Aiming to achieve harmony between “people-friendly healthcare” and “environment-friendly healthcare,” Terumo has has Terumo and “environment-friendly healthcare,” between “people-friendly healthcare” Aiming to achieve harmony establishing our Basic beings with the global environment by in promoting the coexistence of human played an active role to search for ways to strike an even continues Terumo and Environmental Management System. Environmental Policy in the field of healthcare. safety and environmental preservation balance between human

Social and Environmental Promoting Environment-Friendly Report 2012 Business Activities 42 OHSAS18001 Certificate ISO 14001 Certificate an Environmental Audit Committee, which is responsible for which is responsible Audit Committee, an Environmental that each site is effectively internal audits to ensure conducting describe management system. We operating its environmental of these activities in our social and contents the explain and to ensure we maintain high transparency environmental report in our management system. Social and Environmental Report 2012 opics T 14001/OHSAS 18001 Certification Europe Gains ISO Terumo In February 2012, Terumo Europe’s Haasrode factory gained certification under Europe’s In February 2012, Terumo both ISO 14001, an international standard for environmental management, and OHSAS18001, an international standard for occupational health and safety management systems. The factory produces interventional systems, guide- wires, and other medical devices, primarily for the European market. Terumo will continue promoting its environmental as well as health and safety initiatives, with a goal not only of regulatory compliance, but of operating production sites with a minimal environmental impact while providing a safe, secure workplace. Company-Wide Organization for Environmental Management Company-Wide Organization Introduction of the Environmental Management System Management of the Environmental Introduction erations by repetition of the four processes of plan, do, check and act. operations by repetition of the four designed to realize continuous improvement of business PDCA cycle: A management cycle

* We are working to improve our environmental performance by our environmental are working to improve We environmental manage- an efficient and effective developing on the PDCA cycle*. As the ultimate ment system that focuses for environmental management, decision-making authority Committee sets company-wide policies Environment the conservation and confirms the and targets for environmental status of activities There is also and the like every six months.

Social and Environmental Promoting Environment-Friendly Report 2012 Business Activities 43 Project Education for junior high school students Environmental Bulletin Board at the Ashitaka factory Education for associates Energy Conservation and Cost-Cutting Efforts at (Philippines) Corporation Terumo Category Social and Environmental Report 2012 Terumo (Philippines) Corporation, Terumo Engineering-Facilities Category opics T Field Trips Welcoming As part of their classes on the environment, a group of junior high school stu- to learn about our environmental activities and how we dents visited Terumo as well as what they can work to make our products environmentally friendly, do in their everyday lives to protect the environment. The students later wrote environmental initiatives, and to say that they learned a lot about Terumo’s about the importance of doing what they can to protect the environment. Award Year Award In-House Environmental Awards Increasing Environmental Awareness with Environmental Bulletin Boards with Environmental Awareness Increasing Environmental Environmental Education for Associates Education Environmental The bulletin board provides at-a-glance graphs and illustrations The bulletin board provides at-a-glance graphs FY 2011 In FY 1999, Terumo established a system of awards to recognize initiatives and activities making significant contributions to environ- a system of awards to recognize initiatives and activities making significant contributions established In FY 1999, Terumo worldwide. Group companies was expanded beyond Japan to include all Terumo mental preservation. In FY 2003, this program outlining the factory’s energy use, waste output, and other envi- outlining the factory’s explaining ronmental impact information, along with graphics can do to conserve how global warming works and things people awareness of energy at home. It also serves to foster a greater the environment. In 2002, the Ashitaka factory installed an Environmental Bulletin In 2002, the Ashitaka factory installed an Environmental Board, which is updated monthly. To ensure that our associates have a thorough understanding of understanding associates have a thorough ensure that our To with their own obligations Policy and our Basic Environmental activities, we provide general environ- regard to environmental hires as well as task-specific environmen- mental training for new in and factories in Japan. Additionally, tal training at sales offices environmental awareness and take related Japan to further raise environmen- provides citizen Terumo action, as a good corporate intranet and carries out eco campaigns in tal information via our their families can participate. which our associates and

Social and Environmental Promoting Environment-Friendly Report 2012 Business Activities 44 ” Development Guidelines, ® ” certification mark on outstanding products ” certification mark on outstanding products ® In line with this belief, Terumo has created a set of original In line with this belief, Terumo to make it easy for our customers to identify them. to make it easy for our customers to identify consisting of four principles and 24 categories, to govern the consisting of four principles and 24 categories, products. We development of people- and environment-friendly and display our follow the guidelines in our product development own “Human x Eco and more efficient products contributes to the eco-friendliness contributes to the eco-friendliness and more efficient products of hospitals. standards called the “Human x Eco ” Development Guidelines ” Development ® Social and Environmental Report 2012 ” Development Guidelines [Four Principles] ® Developing Environmentally Friendly Products Friendly Environmentally Developing “Human x Eco “Human x Eco These efforts also lead to “environment-friendly healthcare” These efforts also lead to “environment-friendly in the sense that once an infection or medical error occurs, it in the sense that once an infection or medical resources. involves the otherwise unnecessary use of healthcare that the development of safer believes For that reason, Terumo Terumo is committed to providing “people-friendly healthcare” is committed to providing “people-friendly Terumo vision. “People-friendly healthcare” as identified in our corporate healthcare through means enhancing the safety and efficiency of on patients, prevent the provision of products that reduce strains professionals. infections, and improve ease of use for healthcare Aiming to realize both “people-friendly healthcare” and “environment-friendly healthcare,” Terumo develops products that are develops products healthcare,” Terumo “people-friendly healthcare” and “environment-friendly Aiming to realize both professionals, patients and the global environment. friendly to healthcare

Social and Environmental Developing Environmentally Report 2012 Friendly Products 45 Cardiovascular circuit Digital blood pressure monitor IV solution bag healthcare practice healthcare Social and Environmental Report 2012 Digital thermometer IV solution set Promoting PVC-free, DEHP-free Products A pioneer in the removal of mercury from in the removal of A pioneer Measures against Hazardous Substances against Hazardous Measures Where are available, we supply products that use alternatives to materials containing polyvinyl chloride (PVC), which may produce toxic use alternatives to materials containing polyvinyl chloride (PVC), which may produce toxic Where are available, we supply products that use as well as eliminating the (DEHP), a plasticizer that have a concern for toxicity, gas when incinerated, or di (2-ethylhexyl) phthalate of such materials in packaging. In 1983, Terumo marketed the first Japan-made predictive digital thermometer. Driven by environmental concerns, we then took a Driven by environmental concerns, digital thermometer. marketed the first Japan-made predictive In 1983, Terumo been making efforts to replace have We in the following year. our production of mercury thermometers quick action to terminate monitor. marketing a mercury-free blood pressure containing mercury with safer alternatives, including medical-use products

Social and Environmental Developing Environmentally Report 2012 Friendly Products 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Per Unit of Net Sales Landfilled waste Landfilled Proportion of total waste (%) Emissions (consolidated) (1,000t)※ Emissions (consolidated) 2 CO Target Under 99 tons Target Relative to FY 1996 level (%) 1 generated in FY 2011 46 Total waste Total Total waste produced (t) Total Total emissions (t) Total ” certified product ® ※ (non-consolidated) (1,000t) ) 2 (t) Emissions 2 Oxygen concentrator “Human×Eco (t) (t) PTCA balloon catheter Blood bag CO (1,000t-CO Waste reduction from reduction Waste incineration simple ) 3 (FY) (FY) (FY) Oxygen Flow (L/minute) Water Use (1,000 m Water Electricity Cost (¥/month) Amount used (t) Emissions (t) certified product Recycling amount (t) Recycling rate (%) Social and Environmental Report 2012 ) 3 m Conventional concentrator Terumo (t) (t) (1,000 22/kWh (incl. tax); calculated based on “New Electricity Cost Estimations” from the Home Electric 22/kWh (incl. tax); calculated based on “New Electricity Cost Conference Appliances Fair Trade

* Full Current PTCA Balloon Catheter* for Various Types of Therapies Types PTCA Balloon Catheter* for Various Flexible and portable blood bag now used in over 100 countries Smaller, Lighter, Energy-saving Oxygen Concentrator Oxygen Energy-saving Lighter, Smaller, Resource-saving and Waste Reduction Efforts Resource-saving and Waste Energy-saving PTCA balloon catheter is a medical device that is used to widen a clogged blood vessel by inflating a balloon at its tip.

* We developed a PTCA balloon catheter that can be used with various types of therapies We by using more advanced materials and improving the way the balloon is folded. This product has made it possible to reduce the number of catheters used to provide treatment to a patient, resulting in a saving in resources. Aiming to improve safety in transfusion, Terumo marketed the first blood bag produced marketed the first blood Aiming to improve safety in transfusion, Terumo plastic bag, incorpo- in Japan in 1969. Compared with products made of glass, Terumo’s flexibility and portability, offers outstanding rating a blood collection tube and a container, reducing transportation costs as well as waste volume. Comparison of Monthly Electricity Costs to Operate Comparison of Monthly Terumo launched the sale of compact, lightweight oxygen concentrators that consume less power by finely controlling compressor oxygen concentrators that consume less power launched the sale of compact, lightweight Terumo of a power outage or disaster, able to continue to operate in the event rate. In addition, with a built-in battery, operation in line with flow the spread of fire, if fire occurs. overheating at the oxygen outlet to prevent the product can also detect

Social and Environmental Developing Environmentally Report 2012 Friendly Products 47 ” certified thick ® liquid meal IV solution product in a bag Injection solution prefilled syringes “HumanxEco Oxygenator ” certified angiographic kit ® Syringe CAPD bag “Human x Eco Social and Environmental Report 2012 Integration—Oxygenator with Integrated Arterial Filter Integration—Prefilled Syringes Integration—Combining Several Drugs in One Bag Integration—Combining Several Drugs Integration—Thick Liquid Meal that Needs No Water Adjustment No Water Integration—Thick Liquid Meal that Needs Packaging and Waste Volume/Weight Reduction Volume/Weight Packaging and Waste Lighter, Smaller Products Lighter, By integrating an oxygenator and an arterial filter into one device, we reduced the number of parts used in the blood circuit as well as the materials used. Prefilled syringes not only eliminate the need for suction and dissolution, but also replace ampoules and vials. Being made of plastic, prefilled syringes are less fragile and easier to dispose of in terms of waste separation and weight compared with glass syringes. We have placed several IV solutions, which must be mixed prior to injection anyway, into mixed prior to injection anyway, have placed several IV solutions, which must be We including vial containers and syringes used a single bag, reducing the amount of waste, for packaging or injecting. Unlike conventional products in which fluidity and thickness must be adjusted, creating Unlike conventional products in which fluidity produces less waste and reduces the the need for a bottle, this ready-to-use product this mixture of water and thick Moreover, labor associated with the washing of bottles. professionals and caregivers. liquid nutrition reduces the burden on healthcare Having developed a certified angiographic kit that eliminated excess packaging and angiographic kit that eliminated excess Having developed a certified in a single set, we products needed during surgery together procedures by providing this product by and volume of the waste generated by further reduced the weight shape of the tray. and form of its packaging and redesigning the improving the method conventional solu- with Terumo’s This allowed a 53% reduction in materials, compared tion pack. We reduced the size and weight of our syringes while maintaining volume and function- while maintaining and weight of our syringes reduced the size We Reduction waste in terms of weight. a 25% reduction in improvement enabled This ality. also achieved transportation. We and packaging during also reduced costs in the size has (CAPD) peritoneal dialysis our continuous ambulatory in the weight of a 40% reduction in an effort to reduce household waste. bags used in home healthcare

Social and Environmental Developing Environmentally Report 2012 Friendly Products 48 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Landfilled waste Proportion of total waste (%) Emissions (consolidated) (1,000t)※ 2 One year remains to the final year of the target, but Terumo but Terumo One year remains to the final year of the target, CO Terumo business sites in Japan Terumo

Target Under 99 tons Target reduction of 46% relative to fiscal 1990. the goal of meet- will continue its energy-saving measures with ing that objective. * Relative to FY 1996 level (%) 1 generated in FY 2011 Total waste Total Total waste produced (t) Total Emissions 2 Total emissions (t) Total emissions, we take part in the “Challenge 25” campaign in Japan and other eco pro- part in the “Challenge 25” campaign in Japan emissions, we take 2 (non-consolidated) (1,000t)※ ) 2 (t) Emissions 2 (t) Social and Environmental Report 2012 (t) CO (1,000t-CO Emissions per Unit of Net Sales emissions per unit of net sales by 50%* 2 2 Waste reduction from reduction Waste simple incineration emission levels have risen with increases in pro- emission levels have risen with increases in 2 ) 3 (FY) *1 Business sites in Japan *2 Business sites in Japan and production sites overseas Preventing Global Warming Global Preventing (FY) Trends in CO Trends With regard to electricity use, Terumo is making energy-saving efforts and visualizing its power consumption. is making energy-saving efforts and visualizing use, Terumo With regard to electricity To promote further reduction of CO To Target for Reduction of CO for Reduction of Target While CO (FY) Oxygen Flow (L/minute) duction, emissions in fiscal 2011 were 54% per unit of sales, a duction, emissions in fiscal 2011 were 54% grams with the full participation of our associates, in addition to energy-conservation activities conducted on-site. energy-conservation activities conducted of our associates, in addition to grams with the full participation relative to the fiscal 1990 level by fiscal 2012. relative to the fiscal 1990 level by fiscal 2012. Terumo is addressing the issue of global warming by setting a is addressing the issue Terumo target to reduce CO Terumo conducts its business activities based on the assumption that the global environment must be protected. based on the assumption that the global conducts its business activities Terumo

Social and Environmental

Preventing Global Warming Water Use (1,000 m Water

Report 2012 Electricity Cost (¥/month) Amount used (t) Emissions (t) certified product Recycling amount (t) Recycling rate (%) ) 3 m Conventional concentrator Terumo (t) (t) (1,000 Full Current 49 Through-flow boiler Solar-powered water heater Solar-powered illumination is not an issue, fixtures that normally use two fluorescent bulbs have been replaced with single LED fixtures. A water heater was installed on the roof to generate solar-powered efforts to utilize part of the factory’s hot water using solar energy, renewable energy and prevent global warming. Emissions 2 Social and Environmental Report 2012 LED fixtures Overseas Initiatives Initiatives in Japan Effort to Reduce CO Effort to At Terumo Medical Products (Hangzhou) Co., Ltd., lighting fix- At Terumo tures in the production area and almost every other part of the factory have been replaced with LED fixtures, which use less In hallways and offices in non-production areas where energy. Terumo implemented a number of aggressive energy-saving efforts in its offices as well, implemented a number Terumo ensuring and environmentally friendly, encouraging the use of stairs as both healthy temperature settings, turning off or reducing unneces- compliance with air-conditioning sary lighting, and urging associates to work efficiently and go home earlier. Intranet website for checking power usage Office-Based Initiatives Terumo factories and R&D center are all under the service area of Tokyo Electric Power Electric service area of Tokyo factories and R&D center are all under the Terumo triggered by the most seriously affected by the nuclear accident the utility Company, for power, Under the strain of peak summer demand Great East Japan Earthquake. real-time access to information on established an intranet website to provide Terumo locations. Making this information power usage every 30 minutes at the Company’s cooperation of all employees at business available internally made it possible, with the to increase awareness among the entire sites, to promote efforts to cut peak usage and In addition, factories and other sites to conserve energy. workforce of the need Terumo efforts, including the introduction of worked together on other energy conservation units, LED fixtures and other energy-saving compact through-flow boilers, turbo freezer inspections to check for steam leaks devices, and thorough implementation of routine and other issues. In fiscal 2011, faced with the issue of power shortages due to the impact of the Great East Japan Earthquake, Terumo instituted company- instituted Terumo Great East Japan Earthquake, to the impact of the of power shortages due faced with the issue In fiscal 2011, to implementing offices, in addition and sales R&D center, head office, energy use at its factories, to conserve and reduce wide efforts (BCP). Business Continuity Planning Terumo Medical Products (Hangzhou) Co., Ltd. Terumo Initiatives at Factories and R&D Center Initiatives at Factories

Social and Environmental Preventing Global Warming Report 2012 50 emissions. 2 emis- 2 shipping contractors with high transportation efficiency, increas- efficiency, with high transportation shipping contractors and eliminating distribution and integrating ing sea shipping, data on the environmen- have also been monitoring centers. We since fiscal 2006, switching from trucktal impact of distribution to reduce environmental impact, andto marine transportation of our own distribution vehicles. improving the carry efficiency packages were redesigned to of both interior and exterior resulting in a 33% improve- efficiency, enhance pallet-loading to a reduction in ment in volume transported per pallet, leading transport-related CO Social and Environmental Report 2012 opics T Participation in Challenge 25 Campaign Terumo is participating in the Japanese government-led “Challenge 25 cam- Terumo paign” for the prevention of global warming. This campaign asks people to take on “six challenges”—specific, practicable actions to reduce CO sions and in the home. In support of the campaign objective, at the workplace promotes both office- and home-based activities designed to curb Terumo global warming. Streamlining Transport of Advanced Thermometers for Women Streamlining Transport Efforts to Reduce the Environmental Impact of Distribution Impact of Environmental to Reduce the Efforts As a cargo owner, in Japan Terumo has been making efforts to in Japan Terumo As a cargo owner, Individual thermometer packaging includes product manuals, Individual thermometer to ensure the products are inserts, and other documentation role of each document By clarifying the used safely and correctly. the size of each and eliminating redundant content, we reduced time, the shape package by 37%, based on volume. At the same The need to reduce the amount of energy used in the transporta- reduce the amount of The need to to pre- theme in the fight has become a major tion of products vent global warming. and construct an efficient distribu- improve distribution efficiency among other things, reducing the amount tion infrastructure by, our products via a modal shift toof energy used to transport

Social and Environmental Preventing Global Warming Report 2012 51 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Per Unit of Net Sales Landfilled waste Landfilled Proportion of total waste (%) Emissions (consolidated) (1,000t)※ Emissions (consolidated) 2 target, we urge rigid adherence to the proper sorting of waste target, we urge rigid adherence to the proper methods and rules. In and continue to refine our waste treatment was disposed FY 2011, only 0.3% of our total waste by volume emission target for as landfill, meaning that we achieved our zero the eighth consecutive year. CO Target Under 99 tons Target Relative to FY 1996 level (%) 1 generated in FY 2011 in FY Total waste Total Total waste produced (t) Total Trends in the Amount of Landfilled Waste Generated Landfilled Waste in the Amount of Trends Total emissions (t) Total ※ (non-consolidated) (1,000t) ) 2 Social and Environmental Report 2012 (t) Emissions 2 (t) (t) CO (1,000t-CO Waste reduction from reduction Waste incineration simple ) Effective Use of Resources Use of Effective 3 Target for the Reduction of Landfilled Waste for Target (FY) For this reason, we strive to utilize the resources we require effectively and efficiently through activities that all associates and efficiently through activities to utilize the resources we require effectively For this reason, we strive Making Efforts to Reduce the Amount of Landfilled Waste to Reduce the Amount of Making Efforts (FY) Reduce the amount of landfilled waste to less than 1% of the total amount of waste Reduce the amount of landfilled waste to less zero waste emissions) generated (sales offices excepted) (=Ongoing Manufacturing processes and business activities at our factories, Manufacturing processes and business activities have waste. We R&D Center and offices generate a variety of as “an therefore set a target of zero waste emissions—defined 1% of the total amount of landfilled waste equal to less than sites in Japan, amount of waste generated”—for all of our ensure we achieve this reduction excepting our sales offices. To can take part in, including waste reduction, effective resource utilization and improved recycling. waste reduction, effective resource can take part in, including Use of the Earth’s limited resources is what makes Terumo’s business activities possible. Terumo’s limited resources is what makes Use of the Earth’s (FY) Oxygen Flow (L/minute)

Social and Environmental

Effective Use of Resources

Report 2012

Water Use (1,000 m Water Electricity Cost (¥/month) Amount used (t) (t) Emissions certified product Recycling amount (t) Recycling rate (%) ) 3 m Conventional concentrator Terumo (t) (t) (1,000 Full Current 52 cm), enabling customers to reduce waste and cm), enabling customers

cm high to 1

strength. Also, by giving the top and bottom of the cushioning strength. Also, by giving we made it possible to fold the mate- material the same shape, in a reduction in bulk (shrinking from rial for disposal, resulting 22 improving disposability. Social and Environmental Report 2012 Amount of Paper Used in Cushioning Reduced, Curbing Volume of Waste Volume in Cushioning Reduced, Curbing Amount of Paper Used Reducing Packaging Reducing To protect products during shipment, the strength of cushioning products during shipment, the strength protect To was maintained by using a differ- used in packaging oxygenators on the top and bottom. By redesign- ent specification cushioning amount of succeeded in reducing the ing the shape, Terumo the previous design, with no loss of paper used by 25% over For effective use of resources and improved usability, Terumo is making efforts to reduce packaging materials without impairing func- without impairing to reduce packaging materials is making efforts Terumo improved usability, use of resources and For effective design. and reviewing package slimmer packages lighter and smaller, including by developing tionality,

Social and Environmental Effective Use of Resources Report 2012 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Per Unit of Net Sales Landfilled waste Landfilled Proportion of total waste (%) Emissions (consolidated) (1,000t)※ Emissions (consolidated) 2 CO Target Under 99 tons Target Relative to FY 1996 level (%) 1 generated in FY 2011 in FY Total waste Total Total waste produced (t) Total Total emissions (t) Total 53 ※ (non-consolidated) (1,000t) ) 2 (t) Emissions 2 (t) (t) CO 2 (1,000t-CO Waste reduction from reduction Waste incineration simple (FY) (FY) 50% Target reduction ) 3 (FY) (FY) (FY) (FY) Oxygen Flow (L/minute) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Landfilled waste Proportion of total waste (%) Emissions (consolidated) (1,000t)※ 2 Water Use (1,000 m Water CO Target Under 99 tons Target Relative to FY 1996 level (%) Electricity Cost (¥/month) 1 products. We do, however, recycle various types of waste gener- recycle various do, however, products. We and office-based business production processes ated in our plastic products, including floor tiles activities for use in other Our recycling and organic fertilizer. recycled plastic fuel (RPF), rate reached 95% in FY2011. generated in FY 2011 Total waste Total Total waste produced (t) Total Amount used (t) (t) Emissions certified product Recycling amount (t) rate (%) Recycling Total emissions (t) Total (non-consolidated) (1,000t)※ ) ) 2 3 (t) m Emissions Conventional concentrator Terumo 2 (t) (t) (t) CO (t) (1,000t-CO (1,000 Waste reduction from Waste simple incineration Full Current Social and Environmental Report 2012 ) 3 (FY) (FY) (FY) Oxygen Flow (L/minute) Recycling Amount and Rate Breakdown of Total Waste Generated (FY2011) Waste Breakdown of Total Promoting Recycling Promoting Water Use (1,000 m Use Water While our Industrial Waste Group (one of our specialized environ- Group (one of Waste While our Industrial sharing important information plays a big role in mental groups) make efforts to recycle. Due to among sites, all our associates and product safety concerns, it is not their unique properties our products for use in other medical usually possible to recycle Electricity Cost (¥/month)

Social and Environmental

Effective Use of Resources Report 2012 Amount used (t) Emissions (t) certified product Recycling amount (t) Recycling rate (%) ) 3 m Conventional concentrator Terumo (t) (t) (1,000 Full Current 54 In FY2011, we provided the outside recycler with 24 tons of recycler with 24 tons we provided the outside In FY2011, secured a channel for recycling resources. for recycling resources. secured a channel then waste which they bag waste per month, recyclable plastic recycled plastic bag products. turned into Social and Environmental Report 2012 Recycling Plastic Bags Recycling By promoting separate collection of waste to ensure plastic of waste to ensure plastic separate collection By promoting Recycling Flow for Plastic Bags (for Delivery From the Factory to the Outside Recycler) Plastic Bags (for Delivery From the Factory Recycling Flow for bags don’t get mixed with paper, metal, or other plastics, and or other plastics, and metal, with paper, get mixed bags don’t has companies, Terumo of outside recycling with the cooperation Factories generate a considerable volume of plastic bag waste. volume of plastic bag a considerable Factories generate

Social and Environmental Effective Use of Resources Report 2012 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Sales of Net Unit Per Landfilled waste Proportion of total waste (%) Proportion of total waste ※ (1,000t) (consolidated) Emissions 2 CO Target Under 99 tons Target Relative to FY 1996 level (%) 1 generated in FY 2011 Total waste Total Total waste produced (t) Total Total emissions (t) Total 55 ※ (1,000t) (non-consolidated) (Kilograms) ) 2 (t) s Emission 2 (t) (t) CO (1,000t-CO 1,313 Waste reduction from reduction Waste simple incineration ) 3 (FY) Small sealed lead-acid batteries (FY) (FY) Oxygen Flow (L/minute) Water Use (1,000 m Water 24 Electricity Cost (¥/month) Cost Electricity Lithium-ion Water Use Water Amount used (t) (t) Emissions certified product product certified Recycling amount (t) Recycling rate (%) 406 ) 3 Nickel-hydride m Conventional concentrator Terumo (t) (t) (1,000 Full Current Social and Environmental Report 2012 4,541 Nickel-cadmium Collection and Recycling Performance in FY2011 (April 2011 to March 2012) Collection and Recycling Performance Effective Utilization of Water Resources Effective Utilization of Water Initiatives to Recycle Small Rechargeable Batteries Small Rechargeable to Recycle Initiatives Although we expect production our use of water resources by circulating and reusing our cooling water. we are optimizing At Terumo effort to utilize water resources more effectively. levels to continue to rise, we will make every We continue to recycle small rechargeable batteries in accor- small rechargeable continue to recycle We of of Effective Utilization the Act on the Promotion dance with Portable Rechargeable Battery Recycling Resources. The Japan promotes the recycling of small recharge- Center (JBRC), which and recycles used small rechargeable able batteries, collects have made several improve- products. We batteries from Terumo separation processes for our prod- ments to make the recycling logo. In addition, we including displaying a recycling ucts easier, small sealed lead-acid batteries when collect and recycle spent will continue to collect maintenance. We we replace them during batteries. and recycle small rechargeable

Social and Environmental Effective Use of Resources Report 2012

56 1 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Per Unit of Landfilled waste Proportion of total waste (%) Proportion of total waste ※ (consolidated) (1,000t) Emissions 2 CO Target Under 99 tons Target Relative to FY 1996 level (%) 1 and reduce the level of emissions at the source. and reduce the level Substances Group, consisting of representatives from all Substances Group, consisting Our first priority is to factories and R&D facilities. Terumo of substances subject to the PRTR* monitor monthly levels generated in FY 2011 Total waste Total Total waste produced (t) Total Total emissions (t) Total (non-consolidated) (1,000t)※ (non-consolidated) ) 2 (t) Emissions 2 (t) (t) CO Social and Environmental Report 2012 (1,000t-CO Waste reduction from Waste simple incineration ) 3 (FY) (FY) Dichloromethane emissions Under 99 tons Target (FY) Proper Control of Chemical Substances of Chemical Control Proper Oxygen Flow (L/minute) Target for Reduction of Chemical Emissions for Reduction of Target To reduce dichloromethane emissions, Terumo has installed recovery equipment at its Kofu Factory, as we work to bring emissions has installed recovery equipment at its Kofu Factory, Terumo reduce dichloromethane emissions, To per year. below our voluntary target of less than 99 tons Guided by our Basic Environmental Policy, Terumo monitors Terumo Environmental Policy, Guided by our Basic emission, and disposal of chemical and controls the use, work to its own voluntary targets. We substances according the volume of chemical substances to monitor and reduce through our Chemical used and emitted, primarily

Social and Environmental Use (1,000 m Water Proper Control of Chemical Report 2012

Electricity Cost (¥/month)Electricity Substances Amount used (t) (t) Emissions certified product product certified Recycling amount (t) Recycling rate (%) ) 3 m Conventional concentrator Terumo (t) (t) (1,000 Full Current 2 (FY) (FY) 50% Target reduction (FY) Landfilled waste (t) Emissions (t) Recycled Per Unit of Net Sales (%) Landfilled waste Proportion of total waste (%) Emissions (consolidated) (1,000t)※ 2 CO Target Under 99 tons 99 Under Target Relative to FY 1996 level (%) Relative to 1 generated in FY 2011 Total waste Total Total waste produced (t) Total Total emissions (t) emissions Total 57 (non-consolidated) (1,000t)※ ) 2 (t) Emissions 2 2 (t) (t) CO (1,000t-CO (FY) Waste reduction from Waste simple incineration (FY) 50% Target reduction ) 3 (FY) (FY) (FY) (FY) Landfilled waste (t) waste Landfilled Oxygen Flow (L/minute) Emissions (t) Recycled Per Unit of Net Sales (%) Per Unit of Net Sales Landfilled waste Proportion of total waste (%) waste total of Proportion Emissions (consolidated) (1,000t)※ Emissions (consolidated) 2 m Use (1,000 Water CO Target Under 99 tons Target Relative to FY 1996 level (%) Electricity Cost (¥/month) In FY2011, we made improvements to the work environment to the work environment we made improvements In FY2011, 1 results of studies undertaken at the various sites. By the end of results of studies undertaken at the various factory settings to 2009, we had completed the change of our up 141b-containing accommodate alternatives and are now using we continue materials that we have already purchased. Although purposes needing a to consume the in-stock materials for some will gradually small amount of the substance, our 141b emissions decrease and finally become zero. alternatives to ethylene oxide sterilization. to ethylene oxide sterilization. alternatives is performed at the Ashitaka sterilization process in which the effects of these continue to monitor the will We Factory. effort to reduce concentrations of improvements, in an ongoing environment. ethylene oxide in the work generated in FY 2011 Total waste Total Total waste produced (t) produced waste Total Amount used (t) Emissions (t) certified product Recycling amount (t) rate (%) Recycling Total emissions (t) Total ※ (non-consolidated) (1,000t) ) 3 ) 2 m Conventional concentrator Terumo (t) (t) Emissions 2 (t) (t) (t) (1,000 (1,000 CO (1,000t-CO Full Current Social and Environmental Report 2012 Waste reduction from Waste simple incineration ) 3 (FY) (FY) (FY) Oxygen Flow (L/minute) Alternatives to HCFC-141b Initiatives to Reduce Ethylene Oxide Emissions to Reduce Ethylene Initiatives In response to the Montreal Protocol, Japan prohibited domestic In response to the Montreal Protocol, Japan we established manufacture of HCFC-141b in 2010. At Terumo, Group in the HCFC Network under the Chemical Substances of repre- 2005. In the years following, the network, comprised alternatives to sentatives from all of our factories, worked on that use the sub- HCFC-141b, which involved listing processes and sharing the stance, sharing information on alternatives, Ethylene oxide is widely used to sterilize medical devices. At sterilize medical devices. is widely used to Ethylene oxide in oxide emissions to reduce ethylene we are working Terumo, installed catalytic oxidation environment, and have the outside our Ashitaka and Fujinomiya systems at emissions treatment combustion treat- along with Center, factories and our Shonan are also working on We Kofu Factory. ment equipment at the Water Use (1,000 m Water

Social and Environmental

Proper Control of Chemical Electricity Cost (¥/month) Report 2012 Substances Amount used (t) Emissions (t) certified product Recycling amount (t) amount Recycling rate (%) Recycling ) 3 m Conventional concentrator Terumo (t) (t) (1,000 Full Current 58 (Tons) 5.6 0.0 2.7 2.1 0.6 2.1 1.5 0.0 1.7 0.8 4.8 0.0 2.0 0.9 0.0 1.5 1.0 0.5 1.2 1.2 0.0 3.7 0.2 1.9 5.5 0.5 4.9 1.3 0.10.0 93.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.00.00.0 57.1 46.6 0.00.00.0 177.6 85.6 5.10.02.7 17.3 10.1 0.00.0 873.0 0.0 0.00.0 13.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.7 0.0 0.3 0.0 0.0 0.0 0.00.00.0 42.8 40.0 2.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.6 1.8 0.0 2.0 0.1 0.0 0.0 1.5 1.0 0.5 1.2 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 3.1 3.1 0.0 Kofu Factory R&D Total 2.9 0.0 2.7 2.1 0.6 0.0 0.0 0.0 0.8 9.14.30.8 168.3 81.1 0.00.0 0.0 11.4 6.40.0 148.6 0.0 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.5 0.5 4.9 0.0 Factory Ashitaka PCB: polychlorinated biphenyl

* (JESCO). Additionally, we submitted a notification regarding a notification regarding we submitted (JESCO). Additionally, contain- transformers) machinery (high-pressure heavy electrical the when we demolished of PCBs identified ing trace amounts in compli- the transformers building, and are keeping Head Office until they can be treated. ance with applicable laws 0.6 0.0 0.0 0.0 0.0 2.1 1.5 0.0 9.88.50.9 27.1 19.3 20.2 18.8 0.2 0.2 0.0 0.8 0.5 0.3 0.0 0.0 0.00.0 12.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 0.2 1.6 0.0 0.0 0.0 7.76.41.3 32.0 30.5 12.5 58.2 22.9 718.0 Factory Fujinomiya Volume Emissions Emissions Emissions Emissions Emissions Emissions Emissions Emissions Emissions Emissions Emissions Emissions Emissions Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount used Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Amount transferred Social and Environmental Report 2012 Substance Aiming at Appropriate PCB Management Appropriate PCB Aiming at Ethylene oxide gas (EOG) 1,2-dichloroethane HCFC-141b HCFC-225 Dichloromethane Toluene Di (2-ethylhexyl) phthalate (DEHP) Hydrogen fluoride 1-bromopropane Morpholine Dimethylacetamide n-hexane Tetrahydrofuran THF Tetrahydrofuran *1 PRTR: Pollutant Release and Transfer Register Pollutant Release and Transfer *1 PRTR:

Substances Subject to the PRTR* and Substances under Voluntary Management and Substances under Voluntary to the PRTR* Substances Subject In accordance with the Law concerning Special Measures for Special Measures with the Law concerning In accordance and the Waste Wastes of PCB* of Proper Treatment Promotion all we have removed Law, and Public Cleansing Management and other equipment fluorescent light ballasts transformers, disposal ensure the prompt and appropriate containing PCBs. To completed early registration with the of these materials, we office of the Japan Environmental Safety Corporation Toyota

Social and Environmental Proper Control of Chemical Report 2012 Substances 59 other countries, our local subsidiaries also provide regular other countries, our local subsidiaries also provide information, Terumo reports. By centralizing management of this and other works to ensure that surveys of targeted substances cracks. regulatory responses do not fall through the endocrine disruptors. Through cooperation among the relevant endocrine disruptors. Through cooperation among to respond to these requests by is working departments, Terumo and controlling building a forward-looking system for monitoring hazardous substances. Social and Environmental Report 2012 Promotion of Green Procurement and Purchasing Procurement of Green Promotion 1. Collection of Regulatory Information Compliance with Chemical Regulations Worldwide (REACH, etc.) (REACH, Regulations Worldwide Compliance with Chemical Green Procurement Information on environmental regulations obtained from govern- Information on environmental regulations obtained industry is aggre- ment bulletins and through our activities in the In gated by our Environmental Management Department. regulations, and Europe, which has the most advanced chemical Terumo must respond to a wide variety of demands from cus- must respond to a wide Terumo regarding the sub- tomers and government authorities, not only but because of stance control regulations of various countries, allergies and the nature of medical devices, concerns about to cope with is developing a regulatory compliance system worldwide, Terumo In response to increasingly strict chemical regulations relevant departments. future changes through cooperation among For green procurement, which covers the purchase of environmentally friendly raw materials, relevant departments at Terumo departments at Terumo friendly raw materials, relevant which covers the purchase of environmentally For green procurement, a set of established guide- have also instituted green purchasing, a regulatory compliance system. We are working to create as other goods. supplies for factories and offices, as well lines for buying office

Social and Environmental Promotion of Green Procurement Report 2012 and Purchasing 60 procured. This material investigation is conducted in the form of is conducted in the material investigation procured. This a wide variety of purposes survey that serves a comprehensive quality. in assuring product items that are necessary and covers the Quality Assurance become available, As survey results into a database so that we can use the Department enters them needed. data immediately when

® Social and Environmental Report 2012 Development Guidelines ® 3. Feedback to Local Sites 2. Checks in the Design Phase/Supplier Survey in the Design Phase/Supplier 2. Checks Development Guidelines” as a tool to raise the awareness of our to raise the awareness Guidelines” as a tool Development the Quality Assurance Department and designers. Meanwhile, procurement cooperate to investi- sections in charge of material substances contained in materials gate the amount of regulated To ensure that our local sites comply with the regulations, the Environmental Management Department provides feedback to local ensure that our local sites comply with the regulations, the Environmental To subsidiaries and related departments. Human x Eco At the stage of product design, designers are informed of regu- are informed of product design, designers At the stage refrain from using environmen- so that they can lated substances our “Human x Eco use We wherever possible. tal pollutants

Social and Environmental Promotion of Green Procurement Report 2012 and Purchasing 61 57% 57% 65% 73% 12 22 (in thousands; in thousands of yen) (in thousands; in thousands 19,273 12,174 Total of green purchase of green Total 21 34 33,768 16,698 Overall Value Value Items Items Social and Environmental Report 2012 Results of Green Purchasing in Japan for FY2011 Results of Green Purchasing Carrying Out Green Purchasing in Japan Purchasing in Out Green Carrying Head Office/Sales Offices Factories We promote green purchasing through our established guidelines for selecting office and stationery supplies and other equipment used and other equipment and stationery supplies for selecting office established guidelines purchasing through our promote green We to environmental conservation. our other approaches that complements this is an ongoing activity and offices. In Japan, in factories

Social and Environmental Promotion of Green Procurement Report 2012 and Purchasing 62 Social and Environmental Report 2012 Environmental Auditing Environmental Results of Internal Audits Audit Tasks Status of Internal Environmental Audits for Fiscal 2011 Environmental Audits Status of Internal Status of operation of our environmental management organization • Status of operation of our environmental management management • Status of waste management and related risk and energy conservation projects • Progress and results of energy management risk management • Status of chemicals management and related • Status of work environment management and training programs • Status of health and safety-related education While one item was being addressed with respect to occupa- there was no major noncompliance in tional health and safety, this area. Regarding the status of environmental risk management at business sites, efficient management systems are in place tailored to actual site conditions, and clear steps were taken to meet voluntarily set targets. Major noncompliance was not detected with regard to environmental laws and ordinances. • • • Check compliance with environmental laws and ordinances 1. Check compliance with environmental laws risk items and their performance: 2. Check the status of management of environmental 3. Occupational health and safety-related items To ensure that our local sites comply with the regulations, the Environmental Management Department provides feedback to local comply with the regulations, the Environmental Management Department provides feedback ensure that our local sites To subsidiaries and related departments. To prevent illegal acts and environmental problems and reduce present and future environmental risks, we conduct internal environ- and reduce present and future environmental illegal acts and environmental problems prevent To Group companies, including Head Office, and sales offices in Japan, as well as of Terumo mental audits of our factories, R&D Center, overseas sites. As clearly declared in our Basic Environmental Policy, Terumo conducts regular internal environmental audits to prevent illegal internal environmental audits to prevent conducts regular Terumo our Basic Environmental Policy, As clearly declared in problems. acts and environmental Internal environmental audit

Social and Environmental Environmental Auditing Report 2012 63 Audit of waste-treatment contractor METI on-site inspection Social and Environmental Report 2012 Results of External On-Site Inspection in Fiscal 2011 Results of External Results of External Environmental Audits in Fiscal 2011 Audits in Fiscal External Environmental Results of In fiscal 2011, regulatory authorities conducted four external In fiscal 2011, regulatory authorities conducted by the Ministry environmental on-site inspections: an inspection (METI) under the Act on the and Industry Trade of Economy, management Rational Use of Energy; an inspection of sanitation Pollution Water at specified buildings; an inspection under the and a sampling of Control Act and the Air Pollution Control Act; No remedial instructions were forthcoming factory wastewater. from the authorities following the inspections. To confirm that the sludge and waste plastics generated by Terumo are appropriately generated by Terumo sludge and waste plastics confirm that the To we use prepared a checklist that treatment, we have throughout all stages of processed 2011, we contractors. In fiscal collection and disposal audits of our waste in our regular audited 37 contractors. Auditing waste-treatment contractors Auditing

Social and Environmental Environmental Auditing Report 2012 64 Social and Environmental Report 2012 Business Activities and Material Flows and Material Activities Business Terumo determines the environmental impact associated with production processes that use inputs of energy and raw materi- that use inputs of energy and raw impact associated with production processes determines the environmental Terumo are striving to We and uses these values as indicators. like carbon dioxide, wastewater and waste, als and create outputs impact in this manner. reduce our environmental

Social and Environmental Business Activities and Report 2012 Material Flows 65 – 5 Recycled amounts (t) – 0 628 0 238 1 107 0 30 0 17 0 102 1 25 0 1 28 30 67 14 784 17 284 11 1,274 15 349 97 124 53 165 30 3,801 10 3,305 181 462 188 1,248 waste (t) Hazardous 98 61 22 36 11 29 637 805 256 320 146 126 165 735 491 205 Total waste (t) Total ) 3 – 2 6 1 2 88 28 43 64 15 56 1,040 60 1,558 16 54 94 0.5 133 475 528 1,414 1,097 3,999 1,744 3,329 Water usage usage Water (thousands of m 3 5 4 5 2 1 1 2 1 6 19 27 16 17 18 49 17 40 0.1 0.1 0.03 emissions 2 CO (thousands of t) Location Manila, the Philippines Jilin, China Zhejiang, China UK Larne Glasgow, UK Glasgow, USA Colorado California, USA Massachusetts, USA Michigan, USA Maryland, USA Kakamigahara, Gifu Sayama, Saitama Ashigarakami, Kanagawa Nakakoma, Yamanashi Fujinomiya, Shizuoka Fujinomiya, Shizuoka Social and Environmental Report 2012 Site Site Data Terumo Vietnam Co., Ltd. Vietnam Terumo Vietnam Phuc, Vinh Terumo Penpol Ltd.Terumo Kerala, India Terumo (Philippines) Terumo Corporation Changchun Terumo Medical Changchun Terumo Products Co., Ltd. Terumo Medical Products Terumo (Hangzhou) Co., Ltd. Terumo BCT, Inc. BCT, Terumo Vascutek Ltd. Vascutek Europe N.V.’s UK factoryEurope N.V.’s Liverpool, UK Terumo Europe N.V.Terumo Leuven, Belgium Terumo BCT, Inc. BCT, Terumo MicroVention, Inc. MicroVention, TCVS TCVS Terumo Medical Corporation, Medical Corporation, Terumo TCVS Terumo Clinical Supply Terumo Co., Ltd. Ikiken Co., Ltd. Hatagaya Head Office Shibuya, Tokyo R&D Center Kofu Factory Ashitaka Factory Fujinomiya Factory

Social and Environmental Site Data Report 2012 66 , at Fujinomiya and Ashitaka Factories. 2 Social and Environmental Report 2012 We establish the Environmental Control Department at Ashitaka Factory. establish the Environmental We to treat water effluent containing mercury. system to a chelating adsorption system change from a sedimentation We treatment facilities at Fujinomiya Factory. install general water effluent We needle) and shift to a plasma treatment system, of needle hubs (at the base of the discontinue acid surface treatment We acid wastewater. which does not generate control agreement with Fujinomiya city. Fujinomiya and Ashitaka Factories sign a pollution oil to LPG, which contains less sulfur. switch boiler fuel at Fujinomiya Factory from heavy We to thermoplastic elastomer to prevent generation of sulfur oxides change the material for syringe gaskets from rubber We during incineration. at Ashitaka Factory. install general water effluent treatment facilities We switching to ethylene vinyl acetate (EVA), IV solutions (TERUPACK), adopt non-PVC (polyvinyl chloride) containers for We incinerated. which does not generate toxic gases when of regulations. completely stop the use of trichloroethylene, ahead We gases, for the sterilization system at Kofu Factory. adopt gamma ray sterilization, which does not emit We start sale of our non-mercury digital thermometer. We thermometers, as part of our effort to replace medical-use products bring an end to 70 years of production of mercury We containing mercury with safer alternatives. which to plastic vacuum blood collection tubes made of polyester, switch from glass vacuum blood collection tubes We can be disposed by incineration. sets using polybutadiene, which does not generate hazardous start sales of non-PVC hypodermic administration We gases when incinerated. hospital use as part of our effort to replace medical-use products start sales of a digital blood pressure monitor for We consideration of the workplace environment of healthcare practice. containing mercury with safer alternatives, in which does not generate sulfur oxides when elastomer, start sales of a balloon catheter made of thermoplastic We incinerated. in the production process completely abolish the use of ozone-depleting specified chlorofluorocarbon (CFC) chemicals We at Kofu Factory (followed by other factories). needle makes start production of a hypodermic administration set with a new-type plastic needle: the non-metal We post-disposal separation at hospitals as well as incineration easier. establish the Environmental Management Department at Head Office. We supplying 60% of the power used at Kofu Factory, or CHP) at start operating cogeneration (combined heat and power, We the factory. convert the energy source from LPG to city gas, which emits less CO We We completely stop the use of heavy oil at all production sites. We weight. reduce the size and weight of syringes, which enables a 25% reduction of waste in terms of We start the shift to recycled copier paper at our offices. We Factory. introduce a catalytic oxidation treatment system for EOG emissions treatment at Fujinomiya We Basic Environmental Policy. establish Terumo’s We start operating cogeneration at Fujinomiya Factory. We start the shift to recycled paper for catalogues and specification change notifications. We for home use. start to use non-PVC solution containers for continuous ambulatory peritoneal dialysis therapy We enables a 40% reduction The use of polypropylene containers, which do not generate hazardous gases when incinerated, of waste in terms of weight. History of Our Environmental Activities Environmental of Our History History of our environmental activities History of our 1972 1975 1976 1979 1980 1981 1982 1983 1984 1989 1991 1992 1994 1996 1997 1971 1998 1999

Social and Environmental History of Our Environmental Report 2012 Activities 67 Social and Environmental Report 2012 We establish the Environment Committee. Environment establish the We Factory. at Ashitaka start operating cogeneration We and materials for recycling. identification marks packaging and container start indicating We audits. start internal environmental We vehicles. of diesel-powered work abolish the use We published annually). (which has since been Environmental Report first publish our We at Kofu and Ashitaka Factories. stop the operation of incinerators We into storage. equipment containing PCBs and put them stop the use of devices and We administration sets for use on children. start sales of non-PVC hypodermic We Fuji cleanup activity. their family members participate in a Mt. About 80 associates and of benzene and chloroform at Kofu Factory. completely abolish the use We them. at Kofu and Ashitaka Factories and remove stop the use of incinerators We areas (with about 130 participants). as a joint activity for the Kofu and Fujinomiya conduct a cleanup of Mt. Fuji We water. at Kofu Factory to monitor the quality of underground install an observation well We to the DEHP plasticizer. sets using TOTM, an alternative start sales of hypodermic administration We at all major domestic sites. completing the fuel conversion at Kofu Factory, convert from LPG to city gas We conduct on-site inspections at overseas sites. We Project. Mt. Fuji Reforestation launch the Terumo We containing a multivitamin, glucose and amino acids receives the Our high-calorie electrolyte fluid for IV solution in 2004. by the Eco Products Promotion Council at the First Eco-Products Awards Prize awarded President’s Factories. achieve zero waste emissions at Kofu and Fujinomiya We achieve zero waste emissions at Shonan Center. We with the RoHS Directive. start sales of digital blood pressure monitors compliant We introduce turbo refrigeration units at Kofu Factory. We for EOG emissions treatment at Ashitaka Factory. introduce a catalytic oxidation treatment system We Minus 6%. join Team We and Industry’s Trade Prize in the Kanto Bureau of Economy, Director General’s Our Fujinomiya Factory is awarded with the Conservation by a Factory. for Outstanding Energy Awards system for EOG emissions treatment at Ashitaka Factory. install an additional catalytic oxidation treatment We establish a test plant for liquefaction of waste plastic. We introduce “Human x Eco Development Guidelines.” We sites. start environmental auditing at our overseas production We as a supporter of the 2009 Eco-Ship Modal Shift project. Our Fujinomiya Factory is accredited for excellence system for EOG emissions treatment at Fujinomiya Factory. introduce an additional catalytic oxidation treatment We Factory. introduce a solar power generation system at Fujinomiya We in the Kanto Electricity Efficiency Committee Chair Award. Our Kofu Factory is awarded the highest prize Ashitaka Factory. introduce an additional catalytic oxidation treatment system for EOG emissions treatment at We that visualizes demand for Adopted a management system at business sites with high power consumption in Japan electric power owners to become “Shizuoka Future Forest Shizuoka Prefecture (Japan) and forest Agreement signed between Terumo, Supporters” Haasrode Plant Europe’s ISO 14001/OHSAS 18001 certification obtained by Terumo 2001 2002 2003 Office. achieve zero waste emissions at Ashitaka Factory and Head We 2004 2006 2008 2009 2010 2011 2000

Social and Environmental History of Our Environmental Report 2012 Activities 68 Initiatives for FY2012 Initiatives for FY 2012 Continue to practice fair Continue to practice fair hiring and educate hiring managers Continued compliance Continued compliance training Raise the disabled-worker employment ratio year on year Train and promote associ- Train ates based on skills and performance, without gender bias Develop and operate Develop and operate internal control system Maintain rate of over 95% of incoming calls answered within 2.5 seconds Maintain the status of no Maintain the status of no work-related deaths or serious injuries, and fewer work-related accidents requiring time off than the previous fiscal year level • • • • • • •

      96.2% of incoming calls answered within 2.2 seconds

: Evaluation Evaluation for FY2011 for FY2011  - : 0.97317 1 : 0.00238 2 quency rate* quency Results for FY2011 Results for FY2011 Zero work-related deaths Zero work-related deaths or serious injuries in FY 2011 (zero in previous year); 2 other work- related accidents requir ing time off (2 in previous year) Fre Educated hiring managers Educated hiring managers and created manuals Continued compliance Continued compliance training 1.86% disabled-worker employment ratio as of the end of March 2012 Women accounted for accounted for Women 3.4% of management positions (as of the end of March 2012) 95.6% of incoming calls 95.6% of incoming calls answered within 2.2 seconds Developed and operated Developed and operated internal control system Severity rate* • • • • • • •

Voluntary Targets Targets Voluntary Voluntary Targets Targets Voluntary No work-related deaths No work-related deaths or serious injuries, and fewer work-related accidents requiring time off than the previous fiscal year Conduct hiring based on Conduct hiring based on skills, regardless of gender, race, nationality, religion, physical dis- ability or other factors Continue compliance Continue compliance training Maintain a disabled worker employment ratio of 1.8% Train and promote asso- Train ciates based on skills and performance, without gender bias Maintain rate of over Maintain rate of over 95% of incoming calls answered within 2.5 seconds Continually review and Continually review and operate internal control system (Medium-Term Targets) (Medium-Term (Medium-Term Targets) (Medium-Term • • • • • • • Social and Environmental Report 2012 : Target not yet accomplished yet accomplished, : Target : Part of the target not accomplished,  Legend: : Target Initiative Initiative Targets and Achievements of Social and Social and of Achievements and Targets Activities Environmental Social Performance (Japan) Management Performance Management Frequency rate: The number of casualties due to industrial accidents divided by hours worked and multiplied by 1,000,000 Severity rate: The days lost due to industrial accidents divided by hours worked and multiplied by 1,000 Promoting occupational safety Promoting fair hiring Promoting compliance Promoting employment of disabled workers Career advancement of female associates A highly accessible call center Internal control initiatives

1 2 * * We have expanded the content of our management, social and environmental performance initiatives and publish the details, social and environmental performance expanded the content of our management, have We to push forward with Looking to the future, we will continue own evaluations of them in this section. achievements and our of transparency to disclose related information in the interests environmental protection activities and social contribution and as a good corporate citizen. and fulfilling our responsibilities

Social and Environmental Targets and Achievements of Report 2012 Social and Environmental Activities 69 ” ® Initiatives for FY2012 Initiatives for Maintain dichloromethane Maintain dichloromethane emissions of no more than 99 tons Continue voluntary measurement of ethylene oxide concentrations along the boundaries of our facilities Continue to reduce the Continue to reduce the amount of landfilled waste to less than 1% of the total amount of waste at all sites in Japan, excepting sales offices Promote the use of electronic manifests across the group Continue to conduct Continue to conduct environmental impact assessments Continue to develop Continue to develop products compliant with RoHS Directive and to build an assurance system Promote the operation of “Human x Eco Develop- ment Guidelines Promote development of Promote development of environment-friendly products Promote energy-saving Promote energy-saving efforts actions to visualize Take electricity consumption Participate in Challenge 25 campaign and carry out in-house eco campaign Promote eco-driving Continue to promote energy-saving activities in offices Draft global warming targets for FY 2013 and beyond • • • • • • • • • • • • • •      Evaluation Evaluation for FY2011 - emissions emissions 2 ” ® Results for FY2011 Results for Promoted sales of digital Promoted sales of digital blood pressure monitors for hospital use Introduced “Human × Eco Development Guidelines Dichloromethane emissions were 86 tons Carried out voluntary measurement of ethylene oxide concentrations along the boundaries of our facilities Continued to reduce the Continued to reduce the amount of landfilled waste to less than 1% of the total amount of waste at all sites in Japan, excepting sales offices Promoted the use of electronic manifests across the group Continued to conduct to conduct Continued environmental impact assessments - Started odor measure ment along the boundar ies of our production sites Promote energy-saving Promote energy-saving efforts actions to visualize Took electricity consumption Reduced CO Worked on reducing on reducing Worked packaging materials Recovered and recycled used small rechargeable batteries per unit of sales by 46% per unit of sales by 46% relative to FY 1990 level Participated in Challenge 25 campaign and carried out in-house eco campaign Promoted eco-driving Promoted energy-saving activities in offices Continued experimental liquefaction of waste plastic • • • • • • • • • • • • • • • • • - emissions emissions 2 Voluntary Targets Targets Voluntary Reduce CO Remove mercury from Remove mercury from healthcare practice Respond to regulations of different countries Maintain dichloromethane emissions of no more than 99 tons Reduce the amount of Reduce the amount of landfilled waste to less than 1% of the total amount of waste at all sites in Japan, excepting sales offices mine the environmental mine the environmental impacts of development, production and sales activities Quantitatively deter per unit of sales by 50% per unit of sales by 50% relative to FY 1990 level by FY 2012 (Medium-Term Targets) (Medium-Term • • • • • • Social and Environmental Report 2012 Initiative Environmental Performance Environmental Using resources and energy effectively Environmentally friendly products Preventing environmental pollution Reducing waste Determining the environmental impact of our business activities

Social and Environmental Targets and Achievements of Report 2012 Social and Environmental Activities 70 Continue to comply with Continue to comply with REACH and other chemical regulations outside Japan Comply with revisions to Pollution Con- the Water trol Act Publish Social and Envi- ronmental Report 2012 Conduct initiatives for Environment Month Continue eco programs with associate participation Continue to provide environmental education to associates Continue to support volunteer activities, includ- Mt. Fuji ing the Terumo Reforestation Project Continue to maintain the maintain the Continue to Environmental Terumo System at Management Group com- all sites and panies in Japan Continue to conduct at environmental audits - all sites and Group com panies in Japan Conduct environmental audits at factories outside Japan • • • • • • • • • •     - Continued to comply with Continued to comply with REACH and other chemical regulations outside Japan Published Social and Published Social and Environmental Report 2011 Conducted Environment Month initiatives Posted special features on Environment Month on corporate intranet 3,372 associates voluntarily participated in eco programs education to associates Implemented the Terumo Implemented the Terumo Mt. Fuji Reforestation Project (reforestation using native tree varieties) Shizuoka Mirai-no-Mori (Future Forest) Supporter pact signed between Shizuoka Prefecture, woodlands owner and Terumo Supported volunteer activities, including par ticipation in the River Cleanup Tamagawa Campaign (Tokyo) Participated in the “Eco Cap Movement” Cleaned the surroundings premises of Terumo’s Continued to maintain the the to maintain Continued Environmental Terumo System at Management Group com- all sites and panies in Japan environmental Conducted audits at all sites and Group companies in Japan Conducted environmental Medical audits of Terumo Corporation and TCVS Obtained ISO 14001/ OHSAS18001 certification Europe’s for Terumo Haasrode Plant • • • • • 1Provided environmental • • • • • • • • • Confirm compliance Confirm compliance with laws, ordinances and agreements relating to environmental protection, as well as legal compliance overseas Publish social and environmental reports Conduct initiatives for Environment Month Encourage volunteer Encourage volunteer activities Maintain compliance Maintain compliance Envi- with the Terumo ronmental Management System across the Group Terumo • • • • • Social and Environmental Report 2012 Compliance with environmental laws and ordinances Facilitating environmental communication Encouraging volunteer activities Establishing environmental management systems

Social and Environmental Targets and Achievements of Report 2012 Social and Environmental Activities 71 7.0% 4.3% 39.00 50.9% 127.28 63,049 49,650 24,167 56,200 24,322 21,132 18,112 38,716 98,870 28,835 2012 FY ’11 386,686 182,982 189,879 692,520 352,537 256,868 157,998 1,855.25

(247,182) (190,982) ¥ ¥ ¥ 170.30 2011 FY ’10 328,214 236,511

214.44 ¥ Yen 2010 FY ’09 316,009 ¥ 230,432 ¥

Millions of yen Millions of yen 191.86 ¥ 2009 FY ’08 302,747 ¥ 193,659 ¥

32.00 32.00 32.00 34.00 3,082 (34,821) (11,488) (26,417) 15.0%11.2% 13.0%70.3% 9.3% 13.7% 73.4% 10.1% 74.5% 9.9% 7.6% 79.8% 220.30 ¥ 66,94265,346 54,04043,382 52,35369,683 63,282 36,878 63,406 31,616 62,607 41,613 40,722 51,560 67,352 32,339 7,62815,754 46,829 15,954 42,079 17,158 17,837 27,840 17,528 18,440 20,356 21,562 12,322 13,439 13,740 14,761 38,716 38,716 38,716 38,716 17,812 20,382 19,909 20,392 (28,070) (23,988) (25,273) (18,989) 2008 FY ’07 306,382 ¥ 193,929 189,898 189,895 189,881 410,919288,868 379,065 278,167 425,508 317,140 420,038 335,457 218,072 ¥ 114,457103,615 93,701 99,958 99,732 130,700 78,846 157,665 1,489.10 1,464.27 1,668.93 1,765.32

¥ ¥ ¥ . ��

(Note 1) �� : �� Social and Environmental Report 2012 �� (Note 2)

�� (Note 3)

�� (Note 3) �� Effective April 1, 2002, a new accounting standard for earnings per share was adopted. The amounts per share of common stock shown in the consolidated financial summary for prior years have not been restated. The Company has applied the “Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008) from fiscal year 2010. Adjustments were made to the accounting periods of five consolidated subsidiaries in Asia with fiscal years ending in December to make them consistent with that of the The outcome of these adjustments was a 15-month accounting period from January 1, 2010 to March 31, 2011, which increased net sales, operating income, Company. and net income by ¥1,923 million, ¥970 million and ¥685 million, respectively The amortization of goodwill is included in depreciation and amortization. ��

2. 3. 4. 1. 5-year Financial Summary (Consolidated) Summary Financial 5-year

(in thousand shares) Cash dividends Net assets Net income—basic Income before income taxes Income before income Net income Net cash flow from operating activities Net cash flow from investing activities Capital expenditure Depreciation and amortization Net sales Operating income Free cash flow Net cash flow from financing activities R&D expenses Number of associates (in persons) ROE Total net assets Total Capital stock ROA Shareholders’ equity ratio Number of shares of capital stock at year-end Current assets Current liabilities Working capital Working assets Total OTHER STATISTICS: FOR THE PERIOD: Terumo Corporation and subsidiaries Corporation and subsidiaries Terumo ended March 31 Years AT YEAR-END: AT PER COMMON STOCK

(Notes)

Social and Environmental 5-year Financial Summary Report 2012 (Consolidated) 72 (FY) (FY) (FY) (Yen) (Billions of yen) (Billions of yen) (ROE) (Billions of yen) n on Equity Net Income Return on Equity (ROE) Operating Income Excluding Operating of Goodwill Amortization Cash Dividends Per Share Net Income Retur (FY) (FY) (FY) Social and Environmental Report 2012 (Billions of yen) (ROA) (Billions of yen) Gross Profit Margin SG&A Expenses Ratio Total Assets Return on Assets (ROA) Operating Income Operating Margin Total Assets Return on Assets Gross Profit Margin Profit Margin Gross Ratio SG&A Expenses Operating Income Operating Margin

Social and Environmental 5-year Financial Summary Report 2012 (Consolidated) 73 (FY) (191.0) 27.8 42.1 (Billions of yen) (Billions 7.6 ’07 ’08 ’09 ’10 ’11 41.6 Free Cash Flow Free Cash (FY) (FY) ture Capital Expendi Social and Environmental Report 2012 zation (Billions of yen) (Billions n and Amorti ciatio Depre Total Net Assets Shareholders’ Equity Ratio Total Net Assets Total Equity Ratio Shareholders’ Depreciation and Amortization Capital Expenditure (Billions of yen)

Social and Environmental 5-year Financial Summary Report 2012 (Consolidated) 74 % % % % % % % % % 39.9 18.6 41.5 18.6 39.9 39.9 18.6 41.5 41.5 Percent of Sales Percent of Sales Percent of Sales Percent of Sales Percent of Sales Percent of Sales Percent of Sales Percent of Sales Percent of Sales FY FY FY FY FY FY FY FY FY 71.8 154.3 160.6 71.8 71.8 154.3 154.3 160.6 160.6

24.6 157.1 24.6 24.6 144.6 157.1 157.1 144.6 144.6 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10’09 ’11 ’10 ’11 ’09 ’10 ’11 ’09 ’10’09 ’11 ’10 ’11 ’09 ’10 ’11 24.0 Former Consumer Healthcare Business General Hospital Business 24.0 24.0 155.9 136.1 Former Consumer Healthcare Business Former Consumer Healthcare Business General Hospital Business General Hospital Business 155.9 155.9 136.1 136.1

Billion of yen） Billion of yen） Billion of yen） Net Sales Net Sales Net Sales ■ ■ Billion of yen） Billion of yen） Billion of yen） Billion of yen） Billion of yen） Billion of yen） Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales ■ ■ ■ ■ （（（（（（（（（ % % % 18.6 18.6 18.6 Social and Environmental Report 2012 % % % % % % 41.5 39.9 41.5 41.5 . solutions and some other products whose sales . solutions and some other products whose 39.9 39.9 売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率 Overview by Business Segment by Business Overview Fiscal 2010 figures for each business segment exclude elimination or effects from accounting period reconciliation. The Consumer Healthcare Business was merged with the General Hospital Business in April 2012. For reference, previous year figures include results from the Consumer Healthcare Business. Blood Transfusion Business Blood Transfusion General Hospital Business Cardiac & Vascular Business Cardiac & Vascular Outside of Japan, “TACSI,” our automated blood component Outside of Japan, “TACSI,” Outside of Japan, sales were steady in Asia and Latin Outside of Japan, sales were steady in Asia Consequently, net sales of the Cardiac & Vascular Business Vascular net sales of the Cardiac & Consequently, Outside of Japan, sales of “Nobori” increased in Europe, Outside of Japan, sales Note: In Japan, sales of blood bags affected by the earthquake in the first half recovered, and total sales increased compared with the previous fiscal year. processing device, enjoyed favorable sales in Europe, pushing up BCT), total sales for the business. CaridianBCT (now Terumo driven by good sales of which was acquired in April 2011, grew, therapeutic apheresis products. As a result, net sales in the Blood Management Business increased by 192.5% compared with the previous fiscal year to 71.8 billion yen. Note: America, increasing on a constant currency basis, but were badly America, increasing on a constant currency net sales affected by the appreciation of the yen. Consequently, 1.9% compared of the General Hospital Business dropped by with the previous fiscal year to 154.3 billion yen. had temporarily dropped, affected by the earthquake, showed had temporarily dropped, affected by the earthquake, nutritious foods for the while semi-solid signs of steady recovery, of Drug & chronic care market and commissioned business compared with Device (D&D) has seen steady growth. However, domestic sales decreased. the previous fiscal year, In Japan, I.V popularity of TRI (interventional treatment of approaching the popularity of TRI (interventional treatment of wrist) in North & coronary artery from the blood vessels of the Latin America. fiscal year to increased by 11.1% compared with the previous 160.6 billion yen. In Japan, sales of “Nobori,” our drug-eluting coronary stent, In Japan, sales of “Nobori,” while our intravascular ultrasound imag- enjoyed favorable sales, large increase in sales. achieved a “ViewIT,” ing catheter, while interventional systems products Asia, and Latin America, in sales, driven by the increasing showed favorable growth FY2011 (Year ended March 31,2012) ended FY2011 (Year

年度年度年度

年度年度年度年度年度年度

旧ヘルスケア事業

旧ヘルスケア事業旧ヘルスケア事業

718

718 718

1,606 1,543 ■

1,606 1,606

1,543 1,543 ■

Social and Environmental ■

Overview by Business Segment

Report 2012

246

1,446

1,571 1,446

1,446 1,571 1,571 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 240 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 240 240 1,361 ホスピタル事業 1,559 1,361 1,361 ホスピタル事業ホスピタル事業 1,559 1,559 売上高売上高 ■ 売上高売上高売上高売上高売上高 ■ ■ 売上高売上高（億円）（億円）（億円）（億円）（億円）（億円）（億円）（億円）（億円） % % % % % % % % % % % % 11.7 11.7 11.7 49.3 49.3 20.4 20.4 18.6 18.6 49.3 20.4 18.6 売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率売上高構成比率年度年度年度年度年度年度年度年度年度年度年度年度 791 791 454 454 791 454 1,905 1,905 1,905 717 717 717 570 570 375 375 570 375 1,771 1,771 1,771 566 566 566 ’09’09 ’10 ’10 ’11 ’11 ’09’09 ’10 ’10 ’11 ’11 ’09’09 ’10 ’10 ’11 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 538 538 317 317 538 317 1,739 1,739 ’09 ’10 ’11 ’09 ’10 ’11 1,739 ’09 ’10 ’11 566 566 566 売上高売上高売上高売上高売上高売上高売上高売上高売上高売上高売上高売上高（億円）（億円）（億円）（億円）（億円）（億円）（億円）（億円）（億円）アジア他アジア他欧州欧州米州米州日本日本（億円）（億円）（億円）アジア他欧州米州日本 75 % % % % % % % % % % % % 20.4 11.7 11.7 18.6 18.6 20.4 49.3 49.3 20.4 11.7 18.6 49.3 Percentage of sales Percentage Percentage of sales Percentage of sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales Percent of Net Sales FY FY FY FY FY FY FY FY FY FY FY FY 45.4 45.4 71.7 79.1 71.7 79.1 45.4 71.7 79.1 190.5 190.5 190.5 37.5 37.5 56.6 56.6 57.0 57.0 37.5 56.6 57.0 177.1 177.1 177.1 Billion） Billion） Billion） Sales volume Sales volume Sales volume ’09’09 ’10 ’10 ’11 ’11 ’09’09 ’10 ’10 ’11 ’11 ’09’09 ’10 ’10 ’11 ’11 ’09’09 ’10 ’10 ’11 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 （（（ 31.7 31.7 56.6 56.6 53.8 53.8 31.7 56.6 53.8 173.9 173.9 173.9 Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales Net Sales （（（（（（（（（（（（ Social and Environmental Report 2012 Overview by Geographic Segment by Geographic Overview Americas Europe Japan Despite the impact of exchange rates, net sales increased by Despite the impact of exchange rates, net sales Interventional systems products showed favorable growth in sales, driven by the increasing popularity of TRI. Performance was also lifted by sales from CaridianBCT in the Blood Management Business. Sales Increased by 50.5% on a constant currency basis. The significant impact of exchange rates, however, resulted in net sales of 79.1 billion yen, up 38.8% from the previous fiscal year. Sales increased for interventional systems products such as Sales increased for interventional systems products Business, sales drug-eluting stents. In the Blood Management CaridianBCT, were boosted by revenue from recently acquired blood component along with an increase in sales of automated 33.0% on a constant processing devices. Net sales increased by currency basis. 26.7% to 71.7 billion yen. Sales in Japan were driven by significant contributions from such Sales in Japan were driven stents, prefilled syringes, and blood products as drug-eluting increased by 7.5% year on year to bags. As a result, net sales 190.5 billion yen. FY2011 (Year ended March 31,2012) ended FY2011 (Year

Social and Environmental Overview by Geographic Segment Report 2012 % % % % 11.7 49.3 20.4 18.6 売上高構成比率売上高構成比率売上高構成比率売上高構成比率年度年度年度年度 791 454 1,905 717 570 375 1,771 566 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 538 317 1,739 ’09 ’10 ’11 566 売上高売上高売上高売上高（億円）（億円）（億円）（億円）アジア他欧州米州日本 76 % % % % 11.7 18.6 20.4 49.3 Percentage of sales Percent of Net Sales Percent of Percent of Net Sales Percent of Percent of Net Sales Percent of Net Sales FY FY FY FY 79.1 71.7 45.4 190.5 37.5 57.0 56.6 177.1 Billion） Sales volume ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 ’09 ’10 ’11 （ 31.7 53.8 56.6 173.9 Bllions of yen） Bllions of yen） Bllions of yen） Bllions of yen） Net Sales Net Sales Net Sales Net Sales （（（（ Social and Environmental Report 2012 Figures by geographic segment exclude intersegment transactions or the effects Figures by geographic segment of adjustments. Asia and Others Asia and Note: Sales of interventional systems products continued to grow continued to grow systems products Sales of interventional In the Blood Management and other countries. steadily in China boosted by revenue from CaridianBCT, Business, sales were of blood bags. Sales Increased by along with favorable sales basis, but results were negatively 28.2% on a constant currency rates. As a result, net sales Increased by affected by exchange 45.4 billion yen. 21.1% year on year to

Social and Environmental Overview by Geographic Segment Report 2012 77 – 943 (726) 7,798 6,084 5,406 1,644 8,137 83,794 75,538 76,481 75,755 57,674 20,227 10,443 28,895 20,191 13,245 70,468 120,127 189,203 236,511 341,644 113,059 420,038 2011

(228,585)

¥ ¥ 9 Millions of yen 1,089 9,708 8,543 2,490 6,997 (1,240) 78,767 90,711 91,800 90,560 69,281 21,298 15,244 20,387 83,759 53,945 129,841 215,720 256,868 384,593 131,755 138,809 303,897 692,520 2012

(252,838) ¥ ¥ �� : �� Social and Environmental Report 2012 �� Total current assets Total Net property, plant and equipment Net property, Total investments and other assets Total Consolidated Balance Sheet Balance Consolidated Notes Accounts Notes and accounts receivable—trade, net and affiliates Cash and deposits Notes and accounts receivable—trade Less: allowance for doubtful accounts Inventories Deferred tax assets Derivative assets Other current assets Buildings and structures Machinery, equipment and vehicles Machinery, Lease assets Land Construction in progress Less: accumulated depreciation Goodwill Customer relationships Investment securities, including investment securities of unconsolidated subsidiaries Investment securities, including investment Deferred tax assets Other assets ASSETS CURRENT ASSETS: Terumo Corporation and subsidiaries Terumo March 31, 2012 and 2011 PROPERTY, PLANT AND EQUIPMENT PLANT AND PROPERTY, INVESTMENTS AND OTHER ASSETS: TOTAL ASSETS TOTAL

Social and Environmental Consolidated Balance Sheet Report 2012 78 – – – 295 560 636 586 992 378 254 1,757 6,298 1,083 2,060 5,735 3,612 (1,920) 28,955 30,712 17,590 23,391 78,846 38,716 84,581 59,031 (76,880) (30,322) (28,630)

342,966 363,833 335,457 2011 ¥ ¥420,038 2 (4) (52) 423 840 202 154 265 Millions of yen Millions 1,700 1,000 1,538 4,354 60,000 32,221 33,921 11,840 20,665 30,309 80,000 50,000 38,716 44,737 52,104 (29,023) (29,073)

157,998 181,985 339,983 290,529 381,345 352,537 2012 ¥ ¥692,520 �� Social and Environmental Report 2012 �� Total notes and accounts payable—trade notes Total Total current liabilities current Total Total noncurrent liabilities Total liabilities Total Total shareholders’ equity Total Total accumulated other comprehensive income Total Total net assets Total Notes Accounts Authorized 840,000,000 shares in 2012 and 2011: Authorized 840,000,000 shares in 2012 and in 2012 and 2011, respectively issued 189,880,260 and 210,876,260 shares Short-term debt Short-term Notes and accounts payable—trade Notes and accounts Lease obligations Income taxes payable Asset retirement obligations Asset retirement obligations Accrued expenses Other current liabilities Other current liabilities Bonds payable Long-term debt Provision for retirement benefits Asset retirement obligations Lease obligations Provision for directors’ retirement benefits Deferred tax liabilities Capital surplus Capital stock Other noncurrent liabilities Retained earnings Less: treasury stock, at cost Valuation difference on available-for-sale securities difference on available-for-sale Valuation Foreign currency translation adjustments Deferred gains or losses on hedges Minority interests LIABILITIES AND NET ASSETS LIABILITIES LIABILITIES: CURRENT NONCURRENT LIABILITIES: NET ASSETS: CONTINGENCIES TOTAL LIABILITIES AND NET ASSETS TOTAL

Social and Environmental Consolidated Balance Sheet Report 2012 79 – – – – – – 1 81 10 64 (54) (20) (16) 728 142 494 165 (654) (555) 34.00 (4,428) (2,257) (3,001) (1,518) 62,607 170.30 51,560 18,992 19,157 32,403 32,339 (11,047) 157,416 170,798 108,191

2011 ¥328,214 ¥ ¥ Yen – – – – – (5) 57 58 684 149 224 156 295 496 Millions of yen (738) (990) (221) (240) (407) 39.00 (1,729) (1,562) (7,754) (1,318) 63,049 127.28 49,650 24,929 25,425 24,225 24,167 (13,399) 182,047 204,639 141,590

2012 ¥386,686 ¥ ¥ �� Social and Environmental Report 2012 �� Consolidated Income Statement Income Consolidated Gross profit Operating income Income before income taxes and minority interests Income before minority interests Net income Interest and dividends income Royalty income Basic Equity in earnings of affiliates Gain on sales of property, plant and equipment plant and equipment Gain on sales of property, Reversal of allowance for doubtful accounts Reversal of allowance for doubtful accounts Reversal of loss on natural disaster benefit trust Gain on contribution of securities to retirement Subsidy income Impairment loss plant and equipment Loss on disposal of property, Loss on valuation of investment securities Loss on natural disaster Directors’ retirement benefits net Other, Foreign exchange gains (losses) Loss on disposal of inventories Loss on sales of investment securities Loss on sales of golf club memberships Settlement package Environmental expenses Interest expense Deferred Current COST OF SALES EXPENSES AND ADMINISTRATIVE SELLING, GENERAL OTHER INCOME (EXPENSES): NET SALES Terumo Corporation and subsidiaries Corporation and subsidiaries Terumo ended March 31, 2012 and 2011 Years NET INCOME PER COMMON STOCK: CASH DIVIDENDS PER COMMON STOCK INCOME TAXES: MINORITY INTERESTS IN INCOME

Social and Environmental Consolidated Income Statement Report 2012 80 Social and Environmental Report 2012 August 2012 October 2011 August 2013 (tentative)

Reporting Policy Reporting To introduce Terumo’s activities that express our corporate mission, feature reports focus on areas such as initiatives around focus on areas such as initiatives around our corporate mission, feature reports activities that express introduce Terumo’s To Report archives Referenced guidelines Publication schedule Report period Scope of this report Past reports for each year are available in PDF format on our Web site. Past reports for each year are available in PDF format on our Web GRI, Sustainability Reporting Guidelines 2006 Japanese Ministry of the Environment, Environmental Reporting Guidelines (2007 version) Previous report: Next report: This report: Fiscal 2011 (April 1, 2011 through March 31, 2012) Fiscal 2011 (April 1, 2011 through March 31, Activities reported include some recent activities. This report carries data for Terumo Group companies both in Japan and overseas, presented on a consolidated basis wherever possible, Group companies both in Japan and overseas, presented on a consolidated basis This report carries data for Terumo data item. albeit with some exceptions depending on the minimally invasive interventional treatment for cerebral aneurysms; activities related to blood transfusions, which support the activities related to blood transfusions, treatment for cerebral aneurysms; minimally invasive interventional more effective. systems that make valuable vaccines even and the development of injection treatment of cancer patients; Annual Report have Social and Environmental Report and the with the inclusion of financial data, the Effective this fiscal year been fully integrated. This report is created to intuitively share information with stakeholders on Terumo’s business activities conducted under its business activities conducted on Terumo’s to intuitively share information with stakeholders This report is created and promote communication with society. to Society through Healthcare,” corporate mission, “Contributing

Social and Environmental Reporting Policy Report 2012