Terumo Corporation · TSE:4543
Terumo — H1 FYE/Mar. 2008 Earnings Presentation
22 slides from Terumo's earnings presentation, November 2007
Slide 1: Half Year Financial Results for FYE/Mar. 2008
TERUMO CORPORATION Half Year Financial Results for FYE/ Mar. 2008 1
Slide 2: Sales and Profits Enjoyed Double-digit Growth
Sales and Profits Enjoyed Double-digit Growth (Unit: Billion yen) Half Year Half Year Rate of change FYE/Mar. 2007 FYE/Mar. 2008 Net Sales 132.7 150.8 14% Gross Profit (%) 73.3 (55.2%) 82.9 (54.9%) 13% S.G.A Expenses (%) 44.6 (33.6%) 49.3 (32.7%) 11% Operating Income (%) 28.6 (21.6%) 33.5 (22.2%) 17
Slide 3: Net Sales (by Region)
Net Sales (by Region) (Unit: Billion yen) 150.8 +18.2 Growth Rate 132.7 15.1 +3.8 Growth rate 13.7% (10.3%) 11.4 28.9 +4.2 24.7 Asia & Others 33.0% (23.8%) 27.3 +4.6 22.8 Americas 16.8% (13.3%) Europe 20.0% (8.8%) 73.8 79.5 +5.7 Outside of Japan 21.2% (13.6%) Half Year Half Year Japan 7.7% FYE/Mar.
Slide 4: Net Sales (by Product Group)
Net Sales (by Product Group) (Unit: Billion yen) 150.8 +18.2 132.7 24.0 +1.5 Growth Rate 22.5 Growth rate 13.7% 37.6 +7.4 30.3 CV & Vascular grafts 6.5% 15.2 +1.1 14.1 Interventional products 24.3% +8.2 Home health care products 8.0% 65.8 74.1 General hospital products 12.5% Half Year Half Year FYE/
Slide 5: S.G.A Expenses
S.G.A Expenses (Unit: Billion yen) 49.3 +4.7 44.6 7.8 - 7.8 4.8 +0.4 4.4 4.4 (% in change) +0.5 3.8 R&D (+0.2%) 17.4 +2.0 Sales promotion and advertising (+8.0%) 15.4 Logistics (+13.6%) Personnel (+12.8%) 13.2 15.0 +1.9 Others (+14.0%) Half Year Half Year FYE/Mar. 2007 FYE/Mar. 2008 S.G.A Expenses R
Slide 6: Upward Revision
Upward Revision (Unit: Billion yen) FYE/Mar. 2007 FYE/Mar. 2008 Rate of change Net Sales 276.4 305.0 10% Operating Income (%) 58.5 (21.2%) 65.0 (21.3%) 11% Ordinary Income (%) 58.0 (21.0%) 65.0 (21.3%) 12% Net Income (%) 37.2 42.0 13% Average Exchange Rate US$ 117 yen 115 yen 1.9% yen appreciation E
Slide 7: Topics: About domestic and overseas performance
Topics “About domestic and overseas performance” 7
Slide 8: DPC-related products driving general hospital product business
Domestic DPC-related products driving general hospital product business (Unit: billion yen) 50 <DPC -related products> <DPC-related products> 40 Safety products + General IV solution 30 20 10 <Plugs to prevent <General I.V. infection> solution> DPC: A fixed per-day reimbursement system 0 based on th
Slide 9: Further increase in DPC-introduced hospitals
Further increase in DPC-introduced hospitals (Hospitals) 1600 1,433 April 2008 1400 Most hospitals preparing 1200 for DPC will become DPC-introduced 1000 731 800 600 400 144 200 0 FY05 FY06 FY07 Alr eady DPC-Intr oduced Hospitals Pr epar ing for DPC Hospitals 9
Slide 10: Both interventional and general hospital products showed growth
Out of Japan Both interventional and general hospital products showed growth ◆Interventional products ‐Strengthened sales force tailored for each region ‐Expanding sales areas of PTCA balloons and stents ◆General hospital products ‐B2B in Europe & America; Wide range of products in Asia (billion yen
Slide 11: Business development in emerging countries
Business development in emerging countries (%) 60 60 60 56% 40 35% 40 40 25% 28% 15% 19% 20 20 20 0 0 0 North Latin Western Eastern China & 北米 America 中南米 America 西欧 Europe 東欧ロ Europe アジア Asia 中国ｲﾝﾄﾞ India <North and Latin America> <Eastern Europe / Russia> <China/India> *Terumo Chile established *R
Slide 12: Toward even further growth
Toward even further growth 12
Slide 13: Expansion of product line up in America (1)
Expansion of product line up in America (1) ◆Runthrough NS (guidewire for PTCA) - Meeting a wide range of doctor’s needs - Launched in July 2007 - Acquired top share in Japan, and targeting to win top position in America U.S. U.S.market marketscale: scale: 12 Asahi Intecc 8% 12billion billionyen yen
Slide 14: Expansion of product line up in America (2)
Expansion of product line up in America (2) ◆Hydrosoft (highly flexible swelling coil) - The first product was launched in August 2007; series to be expanded - Access devices under development in Japan for strengthening competitive edge with package sales Pre-Expansion Pre-Expansion Post-Expansion P
Slide 15: Clinical trials of new large-scale products expanding (1)
Clinical trials of new large-scale products expanding (1) ◆Drug Eluting Stent, "Nobori“ ‐Clinical trials have started in Japan ‐Highly appreciated in the academic world 「CLINICA」 September 21 2007 15 European Society of Cardiology 2007
Slide 16: Favorable clinical data at TCT meeting held in America
Favorable clinical data at TCT meeting held in America Excerpts from document published at TCT07 ( PhaseⅡ 243 cases) Nobori Control group Number of cases 153 90 Late loss * 0.11mm 0.32mm Restenosis 0.7% 5.4% Stent thrombosis 0% 4.4% * Optimum intima hypertrophy is said to be 0.10 to 0.20mm Remarks:
Slide 17: Clinical trials of new large-scale products expanding (2)
Clinical trials of new large-scale products expanding (2) ◆"DuraHeart“ (Left Ventricular Assist System) - Clinical trial application in America completed - Preparing for clinical trials in Japan 17
Slide 18: New Product in Japan
New Product in Japan PTCA balloon catheter ◆Compatible with different needs, supporting a wide range of different blood-vessels ◆Sales started on October 1, aiming to take the number-one share in the second half Highly Highlydilatable dilatable Highly Highlyflexible flexiblefor fordelivery delivery
Slide 19: Strengthen the power for growth
Strengthen the power for growth (Internal growth & M&A/Alliance) M&A M&A ◆Stent grafts ◆Vascular grafts ◆Cerebral coils Internal Internal growth growth ◆DuraHeart ◆Risk management medical devices ◆Guidewire ◆Prefilled syringes ◆DES ◆Blood glucose monitoring devices Alliances Alliances ◆Olympus ◆Kiri
Slide 20: Growth in all business fields
Growth in all business fields Unit: billion yen STeP UP 350 CAGR 300 Home Healthcare 6.8% 250 200 Cardiac & Vascular 16.0% 150 General Hospital 6.1% 100 50 Total 9.9% 0 Mar.05 Mar.06 Mar.07 Mar.08 (Forecast) 20
Slide 21: Summary
Summary ◆Achievement of 300 billion yen is near at hand, forecast revised upward ◆Unique strategies promoted, taking advantage of domestic changes ◆Preparations in full-swing in view of the next mid-term plan 21
Slide 22: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: [email protected] This document contains forward-looking statements that reflect management’s current views with respect to certain future events and financial performance. Actual results may differ materially from those project