Terumo Corporation · TSE:4543
Terumo — Q3 FY2012 Earnings Presentation
25 slides from Terumo's earnings presentation, Jan 30, 2012
Slide 1: Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012
Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2012 Terumo Corporation January 30, 30 2012
Slide 2: Consolidated Q3 Results
Consolidated Q3 Results (billions of yen) Q3 YTD Q3 YTD YoY% Mar 2011 Mar. Mar 2012* Mar. Net Sales 244.2 288.9 +18% G Gross P Profit fit 127 2 （52.1%） 127.2 154 0 (53.3%) 154.0 +21% 21% SG&A Expenses 79.1 （32.4%） 104.1 (36.0%) +32% Operating Income 48.1 （19.7%） 49.9 (17.3%) + 4% (Excl. Amortization
Slide 3: Q3 Results of BCT Stand Alone
Q3 Results of BCT Stand Alone (billions of yen) Q3 YTD YoY% Mar. 2012 (Constant Currency) Net Sales 34 2 34.2 + 9% Gross Profit 20.8 （60.8%） + 5% SG&A Expenses 12.6 （36.9%） + 16% O Operating ti IIncome 8 2 （23.9%） 8.2 （23 9 ） - 5% Ordinary Income 7.9 （23.0%） If excluding g expenses for integration,
Slide 4: Q3 Results of Existing Business
Excluding BCT & Harvest Q3 Results of Existing Business (billions of yen) Q3 YTD Q3 YTD Constant YoY% Mar. 2011 Mar. 2012 Currency Net Sales 244 2 244.2 253 5 253.5 +4% +7% Gross Profit 127.2 （52.1%） 132.3 （52.2%） +4% +8% SG&A Expenses 79.1 （32.4%） 81.9 （32.3%） +4% +6% O Operating Income I 48 1 （19.
Slide 5: Net Sales (by Region)
Excluding BCT & Harvest Net Sales (by Region) (billions of yen) Consolidated: +4% （+7%） Q3 YTD Q3 YTD M 2011 Mar. Mar. M 2012 ( ) Constant Currency Japan Outside of Japan 41.1 41 1 Europe +4% +6% +1% (+7%) 42.6 （+8%） -7% 42.0 Americas （+2%） 39.2 133.9 141.9 +23% 6.9 110.3 111.6 China （+35%） 8.5 Asia
Slide 6: Net Sales (by Business Segment)
Excluding BCT & Harvest Net Sales (by Business Segment) (billions of yen) -2% （（-1%） 1%） +10% Q3 YTD Q3 YTD M 2011 Mar. Mar. M 2012 （ （+15%） ） ( ) Constant Currency +4% 113.5 （ 7%） （+7%） 115.5 117.4 106.8 18.4 19.0 +4% （+4%） 34 3.4 35 3.5 General Cardiac & Blood Consumer Hospital Vascular Management
Slide 7: Gross Profit Variance Analysis
Excluding BCT & Harvest Gross Profit Variance Analysis 0.2 0.5 02 0.2 S Shift to highly Cost 0.5 down profitable Foreign 0.3 products exchange Prices Volume 52.1% 52.2% Q3 YTD Q3 YTD Average Q3 Q3 Mar. 2011 Exchange Rate Mar. 2011 Mar. 2012 Mar. 2012 US$: 87 yen 79 yen EUR: 113 yen 111 yen 2012/1/30
Slide 8: SG&A Expenses
Excluding BCT & Harvest SG&A Expenses (billions of yen) Q3 YTD Q3 YTD YoY YoY% Mar 2011 Mar. Mar 2012 Mar. Salaries & Wages 28.8 29.2 + 0.4 +1% Sales Promotion 77 7.7 80 8.0 + 0.3 03 +5% Logistical Costs 7.2 7.5 + 0.3 +5% Depreciation & Amortization 3.4 3.4 - 0.0 -2% Others 17.5 18.5 + 1.0 +5% Gener
Slide 9: Other Impacts on Q3 Net Income
Excluding BCT & Harvest Other Impacts on Q3 Net Income <Extraordinary loss> (billions of yen) Loss on sales of Olympus stocks - 1.6 16 - 8.2 Loss on revaluation of Olympus stocks - 6.6 <Corporate tax> Revision of tax system - 0.5 <Net Income variance analysis> Q3 YTD Mar. 2011 8.2 Decrease in ↓ Incr
Slide 10: Forecast for Mar. 2012
Forecast for Mar. 2012 (billions of yen) Original Forecast Revised Forecast Revision Net Sales 383.0 383.0 - Operating Income 62 6 (16.3%) 62.6 (16 3%) 62 6 (16.3%) 62.6 (16 3%) - Ordinary Income 58.0 (15.1%) 57.0 (14.9%) -1.0 Net Income 32.5 ( 8.5%) 26.0 ( 6.8%) -6.5 Operating Excll. Amortizatiion
Slide 11: Topics
Topics 1. Acquisition of Large Diameter Sheath Technology 2 Establishment of Yamaguchi Factory 2. 2012/1/30 ©Terumo Corporation 11/25
Slide 12: Sheath Provides Entry for Interventional Procedure
1. Acquisition of Large Diameter Sheath Technology Sheath Provides Entry for Interventional Procedure The required diameter of sheath is varied by therapeutic interventional devices used Large diameter sheath creates large puncture hole, having heavy strain on patients Small Sheath Diameter Larg
Slide 13: Overcome Challenges to Reduce Strain on Patients
1. Acquisition of Large Diameter Sheath Technology Overcome Challenges to Reduce Strain on Patients Common challenges of large diameter sheath G td Great damage on vessell potentially t ti ll L Large punctured t dh hole l iincrease cause thrombosis and avulsion the risk of bleeding and infection To
Slide 14: World Only Balloon Expandable Large Sheath
1. Acquisition of Large Diameter Sheath Technology World Only Balloon Expandable Large Sheath Onset Medical Corporation (founded in 2003), CA U.S.A. Folded sheath is expanded by balloon after vessel insertion Smaller sheath profile is expected to create smaller puncture hole Due to blood ves
Slide 15: Reduce Bleeding w/ Creating Smaller Punctured Hole
1. Acquisition of Large Diameter Sheath Technology Reduce Bleeding w/ Creating Smaller Punctured Hole 1. Inserted w/ smaller profile 1. 2. Expanded by balloon to ensure large lumen 2. 3. Less bleeding w/ smaller puncture 3. hole Onset Standard Sheath 2012/1/30 ©Terumo Corporation 15/25
Slide 16: Aim To Be Strong No.1 Player in Sheath Market
1. Acquisition of Large Diameter Sheath Technology Aim To Be Strong No.1 Player in Sheath Market Current Terumo’s position in sheath market Small Diameter Sheath Large Diameter Sheath No 1 Global Player No.1 Newly enter w/ Onset Others Terumo Aim to gain 15% of 49% ma k t share market sha in i the
Slide 17: Expand Domestic Base To Underpin Global Production
2. Establishment of Yamaguchi Factory Expand Domestic Base To Underpin Global Production Yamaguchi factory to possess highly advanced technologies Processing technology for guide wire metal alloy Pain management drug: new technological challenge Drug & Device: its technology development to b
Slide 18: Production Globalization
2. Establishment of Yamaguchi Factory Production Globalization Japanese factories Asian factories as MOTHER FACTORIES as PRODUCTION CENTER (Focus on advanced technologies) (Focus on mass production) From 2015 Yamaguchi Kofu Vietnam Technology Ashitaka Fujinomiya Transfer UK U.K. Philippines USA U.S.
Slide 19: Reference
€DTERUMO Reference
Slide 20: Consolidated Q3 Results (Pro-forma comparison)
Consolidated Q3 Results (Pro-forma comparison) (billions of yen) Corresponding Q3 YTD period of last yr YoY% Mar. 2012 Pro-forma basis *1 Net Sales 280.4 288.9 +3% Gross Profit 150 0 （53.5%） 150.0 （53 5%） 154 0 (53.3%) 154.0 (53 3%) +3% SG&A Expenses 101.8 （36.2%） 104.1 (36.0%) +2% Operating Income
Slide 21: Q3 Results to Mar. 2012 Forecast
Q3 Results to Mar. 2012 Forecast (billions of yen) M 2012 F Mar. Forecastt Q3 YTD Results R lt P Progress N tS Net Sales l 383 0 383.0 288 9 288.9 75% Operating Income 62.6 (16.3%) 49.9 (17.3%) 80% Ordinary Income 57.0 (14.9%) 46.3 (16.0%) 81% N Income Net I 26 0 ( 8.7%) 26.0 22 0 ( 7.6%) 22.0 85% A
Slide 22: Gross Profit, SG&A Expenses, Operating Income
Excluding BCT & Harvest Gross Profit, SG&A Expenses, Operating Income (%) Gross Profit 51.7 52.0 51.6 54.2 50.8 SG&A E Expenses 32.5 34.7 31.3 33.1 32.6 Operating 19.2 17.3 20.3 21.1 18.2 Income Q3 Q4 Q1 Q2 Q3 Mar. 2011 Mar. 2012 (Quarterly: 3 months) 2012/1/30 ©Terumo Corporation 22/25
Slide 23: Changes of Quarterly Average Exchange Rates
Changes of Quarterly Average Exchange Rates 130 EUR(Mar. ( 2011) ) EUR(Mar. 2012) 110 117 110 US$(M 2011) US$(Mar. 104 90 US$(Mar. 2012) 82 78 77 70 Q1 Q2 Q3 Q4 (Quarterly: 3 months) 2012/1/30 ©Terumo Corporation 23/25
Slide 24: <Reference> What's Introducer Sheath?
<Reference> What’s Introducer Sheath? A short catheter that is inserted into blood vessel to provide an access point and allow the insertion of interventional devices such as guide wire and other catheters. Guide wire and other interventional Introducer sheath devices are inserted through hemostasis
Slide 25: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: [email protected] Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo