CEO message

Dedicated to tackling healthcare challenges with sincerity and creating new value

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Hikaru Samejima
Chief Executive Officer

Reflections and future vision on taking office as CEO

I am Hikaru Samejima, the newly appointed CEO. Assuming the role of top management is a sobering responsibility, one that I embrace with great seriousness. I joined Terumo in 2002, where I started my career in the Strategic Planning Department. There, I was responsible for overseeing several acquisitions, notably Vascutek in Scotland in 2002 and MicroVention in the U.S. in 2006. I am very pleased that these two businesses are pivotal to Terumo’s growth, contributing significantly to life-saving medical care for patients who have suffered aortic aneurysms and strokes. From 2007, I was in charge of the TIS division of the Cardiac and Vascular Company. In 2017, I became the President of the Cardiac and Vascular Company, leading its global expansion. Beginning in 2020, I also served as the President of the Medical Care Solutions Company, where I focused on expanding our business primarily for medical institutions (including some home use), and alliance business with pharmaceutical companies.

Since joining the company, I have consistently focused on how Terumo’s products and services benefit society. Specifically, I have been dedicated to contributing to advancing healthcare, solving challenges in medical settings, and enhancing patients’ quality of life. I have also been mindful of balancing the company’s globalization and business growth. Based on my experience, I am confident that we can ensure Terumo’s continued development by doing the right things in the right way. I will maintain this unwavering belief and strive to make our company capable of addressing the rapidly changing healthcare challenges and needs in the future. Building this foundation with an eye toward the next 100 years would bring me immense happiness.

New leadership team policies:
What will change and what will remain unchanged

Since its establishment in 1921, Terumo has been dedicated to supporting the advancement of healthcare by sincerely and faithfully addressing healthcare challenges under its Group Mission of “Contributing to Society through Healthcare.” At the time of the company’s founding, improving public health was a critical social issue in Japan due to the Spanish flu epidemic. In response, doctors, engineers, entrepreneurs, and experts in many other fields united with a shared vision to start manufacturing thermometers domestically, marking the beginning of Terumo. In the 1960s, the reuse of syringes led to the spread of infectious diseases, becoming a significant social issue. To solve this issue, we shifted our development focus towards disposable medical devices to reduce the risk of infection and ease the burden on healthcare workers. This change resulted in a gradual decrease in the incidence of infectious diseases and an increase in the population’s average life expectancy. However, as living standards improved, new health challenges emerged, including cancer, cardiovascular diseases, and diabetes. To address these issues, we have been developing medical devices and services for minimally invasive treatments to enhance patients’ quality of life. Currently, to meet the growing societal need for extending healthy life expectancy, we are exploring personalized medicine, which focuses on early detection and optimized treatments tailored to each patient’s specific symptoms and conditions. Through this approach, Terumo has expanded its business by offering solutions to the social issues of each era, progressing alongside medical advancements. As a result, our products and services are now utilized in medical institutions across over 160 countries and regions worldwide. Being a part of such socially significant work brings me joy and pride, and I am excited about Terumo’s vast potential. Together with our associates, I am committed to maximizing this potential, striving to make Terumo a company that is trusted, respected, and chosen globally.

When we turn our attention to healthcare, in which we are deeply involved, we see remarkable and relentless progress. Healthcare needs are becoming increasingly diverse and complex, encompassing coexistence with chronic diseases due to an aging society, the rising burden of healthcare expenses and insurance premiums, the strain on medical resources, the shortage of healthcare workers, disparities in healthcare, the expansion of biopharmaceuticals, and the balance between advanced healthcare and economic efficiency. We must respond sensitively to these changing healthcare environments and deliver value to the medical settings. This value means providing solutions that address the problems and challenges faced by medical institutions, healthcare professionals, and patients.

Considering Terumo’s journey thus far and future healthcare needs, the framework of our five-year growth strategy, “GS26,” remains unchanged. The vision of “From Devices to Solutions” and the three focus areas of “Delivery,” “Digital,” and “Deviceuticals” clearly define the future direction of Terumo. In terms of financial goals, we continue to aim for our targets, including high singledigit revenue growth, an operating margin of at least 20%, and an ROIC of 10% or more, all from growth, ability, and capital efficiency. This fiscal year marks the third year of GS26, and our performance is progressing smoothly. However, we will also strive for further growth, looking ahead to the next five to ten years.

While leveraging Terumo’s traditions and strengths cultivated over the more than 100 years of our history, we aim to steer our management with a future-oriented perspective, carefully discerning what should remain unchanged and what should evolve.

First, I would like to address what should remain unchanged. In my view, the foremost strength of Terumo lies in our Group Mission of “Contributing to Society through Healthcare,” which has always been firmly rooted in many of our associates. This mission serves as the source of intrinsic motivation for each individual and supports over 30,000 associates worldwide. In addition, our “Core Values,” which provide a foundation for decision-making, and the “Terumo Group Code of Conduct,” which serves as a guide for proper behavior, are guiding principles for all associates, including the management team. Furthermore, ensuring the uninterrupted provision of healthcare, i.e., the stable supply of products and services, is our responsibility. In 2018, while I was leading the Cardiac and Vascular Company, we faced shipping delays for certain products. These delays were due to a review of the sterilization process evaluation methods at one of our key facilities, the Ashitaka Factory. Unfortunately, this situation caused significant inconvenience in medical settings. As a company involved in healthcare, we are dedicated to ensuring that such a bitter experience is never repeated. Developing and manufacturing highquality medical devices supported by reliable technology is nonnegotiable. Our commitment to producing products with consistent and uniform quality—those that are “the same every time you use them” and “the same regardless of the item chosen”—is essential to providing security and value to healthcare professionals and patients. This commitment will remain unwavering.

On the other hand, we recognize that changes are also necessary. As the social environment surrounding healthcare undergoes rapid transformation, I aim to manage with a healthy sense of urgency. The challenges we face are becoming increasingly complex and severe, and unfortunately, there are limits to what can be solved simply by providing products. Therefore, we must harness our creativity to provide solutions that meet the needs of users and patients and become their preferred choices. Our solutions will involve combinations of multiple devices, as well as devices with pharmaceuticals or diagnostics. In addition, we aim to offer services that utilize digital technology and educational initiatives for healthcare professionals and patients. To address the healthcare challenges ahead, we need to accelerate the development of our solutions and enhance our innovation efforts. We are already seeing tangible signs of progress in these areas. I would like to introduce you to the three Ds, which are the focus areas of GS26.

The first “D” is Delivery. Terumo Aortic, headquartered in Scotland, UK, provides stent grafts for treating aortic diseases. These stent grafts are designed for minimally invasive placement in the aorta of patients with such conditions. Blood vessels have varying characteristics, such as shape, size, and the angles of branching vessels, which differ from patient to patient. We also offer custom devices tailored to specific sizes and shapes to address complex lesions that are difficult to treat with standard products. In recognition of our custom devices, we have received the King’s Award for Enterprise in the Innovation category, with the award ceremony taking place at Windsor Castle in the UK in July 2024. We are honored to have received this highly prestigious award.

The second “D” is Digital. In March 2024, we formed a business and capital alliance with Medcom, Inc., a provider of smartphone services for medical institutions designed for highly secure environments. By integrating data from Terumo’s infusion pumps, syringe pumps, and HR Joint communication-equipped measurement devices that track vital signs, we enable real-time access to patient information through Medcom’s platform. As work-style reform progresses in the medical setting, we aim to assist healthcare institutions in achieving patient-centered care by creating an environment where patients can be continuously monitored, regardless of location or time.

The third “D” stands for Deviceuticals, which are solutions that combine medical devices and pharmaceuticals. There is a high global demand for drugs derived from plasma components in blood, known as plasma-fractionated drugs, and this market continues to grow. A typical example of this is immunoglobulin products, which are used to treat various immunity-related diseases. Improvements in the production and operation of the Rika Plasma Donation System developed by Blood and Cell Technologies Company are progressing well and on track. Consequently, the implementation of Rika is also proceeding well at the plasma collection centers operated by CSL.

I believe that transformation beyond the existing framework is now required in Terumo. To swiftly respond to diverse needs, we will focus on internal development while also promoting open innovation and leveraging all available resources, including collaboration with startup companies. Our innovation is not limited to developing devices for existing markets but also involves creating new markets, value, and solutions with fresh ideas.

At the same time, we will also work to optimize our business portfolio. The resilience of our unique business portfolio was demonstrated even during the COVID-19 pandemic. However, I believe there is room for improvement in its current state. In order to enhance group-wide synergies, drive growth, and improve profitability while fulfilling our responsibility as a leading company providing medical infrastructure, we will review our business portfolio to identify ways to further enhance our corporate value.

Enhance sustainability management practices

Our goal of increasing our intrinsic value goes beyond the pursuit of financial performance.

From a governance perspective, we have clarified the roles of our executive officers as of April 2024. First, Toshihiko Osada, who has extensive experience in R&D and business development, was appointed Director in charge of Innovation. By consolidating the R&D Division, DX Promotion Department, and Intellectual Property Department under his responsibility, he will drive technological innovation for the next mediumto long-term period. Next, Kazunori Hirose was appointed as the Director in charge of the Global Supply Chain, Quality, and EHS (Environment, Health, and Safety). He will promote the reinforcement of a safe and secure system that provides a stable end-to-end supply of high-quality products. Then, Norimasa Kunimoto was appointed as the Director in charge of Corporate Value Promotion. We aim to enhance corporate value through communication with society, customers, and within the company. Finally, the accounting and human resources-related departments, which are important assets of the company, as well as the departments related to internal control, which are responsible for sound corporate management, will be placed directly under the control of the CEO, with the aim of achieving effective utilization of management resources and balanced business activities. At the same time, we will further strengthen corporate governance by increasing the transparency and objectivity of management, including outside directors, and by further accelerating decision-making.

The next point is the environment. We are making steady progress toward our goal of achieving carbon neutrality by 2040. We met our fiscal 2023 target for reducing Scope 1 and 2 emissions from our operations. We are also working with suppliers and pharmaceutical companies to reduce Scope 3 emissions in our upstream and downstream supply chains. For instance, pharmaceutical companies and Terumo are responsible for shipping and delivering pharmaceutical products to the same medical institutions. Therefore, we conduct joint delivery initiatives to reduce the environmental impact of product transportation. This initiative is just one example of our efforts to promote environmentally friendly management practices actively.

The third point is our associates. Even with outstanding business and growth strategies, these alone cannot achieve expanding corporate value. It is our associates who drive business and execute growth strategies. Terumo spares no effort in investing in talent and is committed to developing talent as part of its management strategy while also promoting DE&I initiatives. One example of our talent development initiatives is the global training program for next-generation leaders, in which more than 300 associates have participated. I am confident that when associates of different genders, nationalities, and diverse career paths collaborate and communicate with each other, Terumo will thrive and advance in the appropriate and right direction.

Finally, I would like to highlight our collaboration with the Japanese Red Cross Society as an example of our efforts to serve our society. In June 2024, we signed a comprehensive partnership agreement with the Japanese Red Cross Society. Based on this agreement, we will engage in activities that contribute to the development of regional healthcare and society, while addressing social and healthcare issues within communities. Our initiatives will include donations for disaster relief, the expansion of our in-house blood donation initiatives, and efforts to promote blood donation as part of our social contribution activities.

At Terumo, our unwavering commitment to addressing healthcare challenges defines our business. We will continue taking on the challenges of creating social value through our businesses, thereby enhancing Terumo’s corporate value. We ask for your continued understanding and support in this endeavor.