Terumo Corporation · TSE:4543
Terumo — Investor Presentation (November 2022)
14 slides from Terumo's investor presentation, Nov 10, 2022
Slide 1: Production & Operation Strategy to lead the success of GS26
Production & Operation Strategy to lead the success of GS26 Realize 1 trillion yen in sales, Earnings Improvement and a New Business Model Simultaneously November 10, 2022 Shinjiro Sato President and CEO Terumo Corporation
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for Forward-Looking Statements and Use of Document Among the information that Terumo discloses, the forward-looking statements including financial projections are based upon our assumptions using information available to us at the time and are not intended to be guarantees of future even
Slide 3: Production Strategy Transition
Production Strategy Transition Globalization of strategy with the changes of the era Operation by Optimize Low-cost Expansion of operation domestic factories production in Asia of EU/US subsidiaries Hangzhou Ashitaka TCVS（US） Factory Factory Changchun Kofu Factory(Closed) MV（US） Factory Philippines
Slide 4: Create business and regional diversity than ever before in GS26
Create business and regional diversity than ever before in GS26 Crucial issue to strengthen operation both volume and quality TMCS Potential of growth in each company Increase sales overseas Growth led by business model change Reference; GS26 presentation ©TERUMO CORPORATION 4 / 13
Slide 5: Improvement GP with saving COGS in GS26
Improvement GP with saving COGS in GS26 ＜Breakdown＞ Production ＋1.0% Quality + Production Efficiency Reference; GS26 presentation Saving cost of Procurement/Production/Logistics Promoting Automation/Saving resource/DX Group-wide synergy of production technology ©TERUMO CORPORATION 5 / 13
Slide 6: Issues and Solutions to lead the success of GS26
Issues and Solutions to lead the success of GS26 １ Focus market: United States/Increase Supply Strategic production sites in the US market National strategy, US competition, ecosystem, talent, track record Shift to Costa Rica ２ Strategic market: China/Local Production Capacity Major focus market alo
Slide 7: Costa Rica: N. American strategic production site
Costa Rica: N. American strategic production site １ All US competition are there Medtronic, Boston Scientific, Abbott, Edwards, Merit Medical, Philips, Smith & Nephew, etc. Costa Rica advantages National strategy (Tax benefits: Free Zone) Ecosystem of approx. 90 firms, including sterilizers MedTech
Slide 8: Terumo History, Future Moves
Terumo History, Future Moves １ MicroVention came first, other Terumo companies followed First entry into Costa Rica MicroVention TBCT TCV 3rd Factory MicroVention 2nd Factory MicroVention 1st Factory Neurovascular Transfusion, infusion, Oxygenator blood circuit treatment devices collection systems B
Slide 9: Profitability Improvement by Consolidation in Costa Rica
Profitability Improvement by Consolidation in Costa Rica １ 3 Business total 5B Yen~/Year in the last year of GS26 (FY26) MicroVention TBCT TCVS Consolidate labor Transition labor- Expand production Produce existing intensive products capacity products with stable from Lakewood Access new m
Slide 10: China production strategy: Rebuilding
China production strategy: Rebuilding ２ Buy China, VBP era regional strategy Sustanable growth in the giant market Medical device market exceeded 100 billion USD (2020) ESSEN（Beijing） Per-capita GDP increase, healthcare expenditure Acquired in 2018 growth potential high No. of Associates：180 Beijing
Slide 11: Reforming TIS Operation: Optimizing Global Production & Operation
Reforming TIS Operation ３ Optimizing Global Production & Operation Integrating Group wide factories Expansion capacity Transfer of capacity Global Supply Regional Supply Factory A Ashitaka Ashi ・ -taka ・ Mother Factory C工場 ・ Volume Expansion & Speed Optimizing Global Production for Stable requir
Slide 12: Business Model Change ~CAPEX for B2B~
Business Model Change ~CAPEX for B2B~ ４ Pharmaceutical Solutions Growth with Exceeding CAGR15% Sales Profitability of TMCS total improvement(15%) CAPEX Plasma Innovation Entered the market as $800M/CAGR8～10％ Model case of project type of business Profitability of TMCS total improvement(〜20％) ©TERUMO
Slide 13: Key Success Factors to Achieve GS26
Key Success Factors to Achieve GS26 Stable Global Supply Strengthen production capacity both Global & Regional Earnings improvement Operations transformation to raise gross profitability Site location with decarbonizing perspective, promotion of Environmental impact reduction renewable energy SCM ad
Slide 14: ~“TERUMO
~“TERUMO