Sysmex Corporation · TSE:6869
Sysmex — FY2004 Earnings Presentation
49 slides from Sysmex's earnings presentation, May 2005
Slide 1: Business Results FY2004
Susmex Business Results FY2004 SYSMEX CORPORATION
Slide 2: Operating Results
Operating Results Michiaki Ishida Executive Officer Vice President of Administration
Slide 3: Topics No.1
Topics No.1 R＆D Begun a collaboration with VU University Medical Center (Amsterdam, The BMA Laboratories Netherlands) to evaluate the clinical performance of the automated cervical cancer screening technology Establish the Sysmex BMA Laboratories at the business support center for Biomedical R
Slide 4: Topics No.2
Topics No.2 Affiliate companies Establishment of a 2nd reagent factory located in Wuxi city Launch of a Laboratory information system for the Chinese market Establishment of a new factory located in Brazil Integrated CNA Co., Ltd into Sysmex Group SYSMEX WUXI CO.,LTD. Others Chosen sup
Slide 5: New Offerings from Sysmex
New Offerings from Sysmex 【Instrument / Reagent】 ●Automated Hematology Slide Preparation Unit SP-1000i ●Fully Automated Urine Cell Analyzer UF-110i ●Urine Collection Device URITZ ●Reagents for ELSIA ・Ct AUTO-FS(KW) -IgA ・HBC-IgM AUTO/FS(KW) Automated Hematology ●Enzym Calibrater-Plus and Enzym Slide
Slide 6: Summary of Business Results for the Current Term
Summary of Business Results for the Current Term
Slide 7: Financial Highlights (Consolidated) No.1
Financial Highlights (Consolidated)No.1 New Records : Sales, Operating Income Ordinary Income, Net Income Sales ：Increased Sales, five terms in a row Over 10 percentage growth, four terms in a row Ordinary Income ：Increased Income, seven terms in a row Over three times as much as that in fiscal 2000
Slide 8: Financial Highlights (Consolidated) No.2
Financial Highlights (Consolidated)No.2 Raised Income per Net Sales Ordinary Income ratio ：12.8% Raised over 10 % Rate of Return On Equity（ROE） ：10.7% Over double the percent in fiscal 2001 Net Income per Share（EPS） ：225.0 yen Increased 69.8%, compared with previous term (%) (JPY) (%) 【Income ratio】
Slide 9: Net Sales (Consolidated)
Net Sales (Consolidated) (in billions of JPY) 76.9 +16.6% 80 66.0 57.3 43.5 +27.3% 60 34.2 Total 47.5 (57%) 26.8 (52%) 38.8 Sales (47%) 40 22.9 19.5 (48%) (50%) 33.4 +5.１% 31.8 20 30.5 (43%) 24.6 (48%) 19.3 (53%) (52%) (50%) 0 2000 2001 2002 2003 2004 Japan International 8
Slide 10: Breakdown of Net Sales
Breakdown of Net Sales • FX impact excluded from regional sales below (in billions of JPY) AP FX impact China Europe 0.6 △0.8 1.1 Americas 3.0 5.4 Japan 76.9 1.6 66.0 2003 2004 9
Slide 11: Breakdown of Ordinary Income
Breakdown of Ordinary Income (in billions of JPY) Gross Margin decreased due to 0.2% cost of good increase Decreased operating Improved non-operating loss Income by FX impact. Exchange gain ¥440 million Gross margin （+¥1,380 million from on increased previous year) sales △0.2 △3.9 +6.8 +1.8 △0.2 9.9
Slide 12: Performance of SG&A, R&D investment
Performance of SG&A, R&D investment (in billions of JPY) （%） 80 51.2 (+16.6％) 76.9 52 50.3 66 (+15.2％) 50 60 (+20.5％) 57.3 (+22.5％) 47.5 49.1 47.6 48 Amount Ratio 38.8 (+11.5％) 35.0 40 (+11.8％) 31.4 (+15.4％) 28.1 (+24.6％) 24.3 46 19.5 20 45.5 44 4.1 5.0 5.5 6.5 3.5 0 42 2000 2001 2002 2003 2004 Sale
Slide 13: Geographic Segment Information
Geographic Segment Information (in billions of JPY) (in billions of JPY) Japan 60 53.4 10 Total 48.5 50 45.0 8 18.9 Oparating Income 40 15.5 13.6 6 Sales 30 5.4 5.7 4 20 3.7 34.5 33.0 10 2 31.4 0 0 2002 2003 2004 Outside Sales Inside Sales Operating Income 12
Slide 14: Geographic Segment Information
Geographic Segment Information (in billions of JPY) 15 Americas 0.5 25 Europe 21.2 3 13.6 2.5 12 0.2 20 17.6 Operating Income Operating Income 14.5 0.0 2 9 2.3 15 Sales 9.2 Sales △0.2 1.5 6 10 6.3 △0.5 1 △0.6 1.1 1.3 3 5 0.5 0 △1.0 0 0 2002 2003 2004 2002 2003 2004 5 China 0.6 4 ＡＰ 0.4 0.49 Operatin
Slide 15: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) (in billions of JPY) Total 77.66 71.98 66.44 20.70 Increased Fixed Assets 20.87 Acquired real estate＋2.3 billions 23.07 0.8 0.01 50.06 48.23 42.86 0.05 Ratio of Shareholder equity 56.14 51.09 7１．0％→72.3％ 43.32 23.58 27.59 23.74 Asset Liability Asset Liability Asset Liabi
Slide 16: Consolidated Cash Flow
Consolidated Cash Flow (in billions of JPY) 13.7 14 10.3 10.5 10 9.3 6.7 5.6 6 2 △2 △2.3 △2.0△2.4 △3.2 △6 △4.4 △5.6 △10 Operating CF Investing CF Finacing CF Cash and Cash Equivalent at end of year 2002 2003 2004 15
Slide 17: Consolidated Earnings Forecast for Fiscal Year Ended Mar. 31, 2006
Consolidated Earnings Forecast for Fiscal Year Ended Mar. 31, 2006
Slide 18: FY2005 Consolidated Earnings Forecast
FY 2005 Consolidated Earnings Forecast (in billions of JPY) (in billions of JPY) 100 15 86.0 +11.8％ 76.9 11.0 12.5 80 +11.4％ 66.0 9.9 +17.5％ 10 60 57.3 10.7 Income Sales 47.5 6.6 9.1 7.5 5.3 +13.4％ 40 4.0 6.5 5 5.3 5.6 5.7 20 3.4 2.5 3.1 3.2 0 1.3 0 2001 2002 2003 2004 2005 Sales Operating Income Or
Slide 19: Geographic Segment Information
Geographic Segment Information (in billions of JPY) (in billions of JPY) Japan 57.8 10 Total 53.4 60 48.5 8 Operating Income 18.9 21.5 15.5 40 Sales 5.7 5 5.4 5.7 20 34.5 36.3 33.0 3 0 0 2003 2004 2005 Outside Sales Inside Sales Operating Income 18
Slide 20: Geographic Segment Information
Geographic Segment Information (in billions of JPY) Americas 16.2 25 Europe 24.1 18 1.0 21.2 4 15 13.6 20 17.6 Operating Income Operating Income 0.6 0.5 12 9.2 15 3.0 3 Sales Sales 9 0.2 0.0 10 2.3 6 △0.5 2 3 5 △0.6 1.3 0 △1.0 0 1 2003 2004 2005 2003 2004 2005 7 China 6.0 0.8 4 ＡＰ 3.4 0.6 6 4.8 2.8
Slide 21: Projected Dividend for the Fiscal Year 2004
Projected Dividend or the Fiscal Year 2004 Interim Year-end Total dividend dividend FY2005 ¥20 ¥20 ¥40 FY2004 ¥15 ¥25 ¥40 ※Dividend at the end of FY2004 was ¥25 increased from ¥15 20
Slide 22: Future Opportunities – Mid-term Plan –
Future Opportunities – Mid-term Plan – Hisashi Ietsugu President and CEO
Slide 23: Contents and Forward-Looking Statements
Contents 1. Market Scenarios 2. Progress to Date 3. Mid-term Plan Forward-Looking Statements This material contains forward-looking statements about Sysmex Corporation and its group companies (the Sysmex Group). These forward-looking statements are based on current judgments and assumptions of the S
Slide 24: Market Scenarios
Susmex Wi ip Market Scenarios WA Nt) (
Slide 25: Changes in the healthcare market
Changes in the healthcare market Market Healthcare policies Emerging economies of the BRIC Group Trial of DRG* prospective payment system (Brazil, Russia, India & China) (Germany) EU expansion (Eastern Europe) Continued downward pressure on medical Aging of population in advanced countries
Slide 26: Progress to Date
Progress to Date (Review of FY2003 & FY2004)
Slide 27: Track record
Track record Sales：Targets （in billions of JPY） Sales:Results ¾¾Both Bothsales salesand andprofits profitsoutperformed outperformedtargets targets Operating Income：Targets Net Operating Income：Results Oprating laid out in the plan laid out in the plan Sales Income ¾¾Successful Successfulqualitative
Slide 28: Progress and achievements by region
Progress and achievements by region Sales:Targets Sales:Results （in billions of JPY） Successful transition to a direct sales/service 15 Operating Income:Targets Operating Income:Results 13.7 2.0 network in the US 9.2 9 Brand recognition and perception Americas 10 12.0 1.0 6.4 0.2 9 F-TAC* enhanced
Slide 29: Progress and achievements by region
Progress and achievements by region （in billions of JPY） ＡＰ China 4.8 5 1.03.0 2.7 0.6 Focus on bottom line in China China / Asia-Pacific 3.9 2.4 4 4.8 0.8 2.5 2.9 0.5 and Asia-Pacific 3.9 0.50 2.0 2.4 0.4 3 3.0 3.2 0.40 0.6 1.9 0.25 9 Business expansion via 1.5 0.3 2 0.4 1.0 1.4 0.16 0.15 0.2 lev
Slide 30: Mid-term Plan
Mid-term Plan (FY2003-FY2004)
Slide 31: Strategies / Targets for FY2010
Strategies / Targets for FY2010 Fundamental strategies Global Niche No. 1 Focus on Focus on Asia Life Science Long-term Vision: A Unique & Global Healthcare Testing Company Targets for FY2010 Positioning No. 1 solutions provider in the diagnostics field Innovative company in the life science
Slide 32: Management strategies
Management strategies Aggressive investment in the life science business with continued sales and profit growth New businesses Accelerate commercialization of (in billions of JPY) life science research 150 No. 1 solutions provider for diagnostics Boost the diagnostics business (R&D, Manufacturing, M
Slide 33: Global diagnostics market
Global diagnostics market Americas Europe 6% Japan 7% China 3% 16% ＡＰ 6% Total 7％ (company estimate) Sales growth in 2003/2004 Roche Abbott J&J Bayer Beckman Coulter Dade Behring Sysmex 0 5 10 15 20 ［％］ 32
Slide 34: Approach to the No. 1 in Hematology
Approach to the No. 1 in Hematology Europe １３％ ３７％ ２２％ Japan ４９％ Americas China ６５％ ５０％ ４０％ AP Sysmex Overall growth of the global hematology market: 4% ２７％ ３４％ Hematology market in 2007: ¥173.5 billion (estimated) (company estimate) 33
Slide 35: Targets for FY2007 and key issues
Targets for FY2007 and key issues Targets for FY2007 ¾ Net Sales ：¥110.0 billion ¾ Operating Income ：¥15.7 billion ¾ Ordinary Income ：¥16.0 billion ¾ Ratio of Ordinary Income to Net Sales ：14.5% Key issues ¾ ROE ：13.0% Exchange rate： US$1 = ¥105, €1 = ¥135 Sustainable sales and profit growth in the
Slide 36: Approach to the targets for FY2007
Approach to the targets for FY2007 (in billions of JPY) 120 50 ¾Benefits of greater scale 110.0 9 SG&A ratio falls as sales grow faster than SG&A expenses 47.6 45.5 45.5 44.9 100 43.9 ¾Sales growth driven by Americas and Europe (JPY in billions) ：Plan 40 96.5 86.0 80 76.9 30 +48% 110.0 66.0 60 (Geog
Slide 37: Strategic priorities in the US market
Strategic priorities in the US market Overall Perfor Reliabil Techno Service Price* Template business model mance ity logy Sysmex A+ A+ A+ A A A Increase Expand Improve Company A B A A A C B unit sales of reagent profitability Company B B A A B B B instruments sales Company C C B B B B B Third-party
Slide 38: Strengthen the diagnostics business [Americas]
Strengthen the diagnostics business [Americas] Expand market penetration in Hematology Operating environment Basic strategy in the US Our penetration Healthy people 2010 Large 9 Developing programs to improve health Reference Hospital Diversity customer needs of IHN/IDN* lab market Mid-sized mar
Slide 39: Strengthen the diagnostics business [Europe]
Strengthen the diagnostics Business [Europe] Achieve sustainable growth Operating Environment Basic Strategy in Europe Strong Euro Ongoing drive to contain healthcare costs in advanced countries Advanced Areas Emerging Areas 9Planned full- full-scale launch of DRG prospective Provide solutions M
Slide 40: Strengthen the diagnostics business [China]
Strengthen the diagnostics business [China] Establish position as the No. 1 Total Supplier through greater penetration of the diagnostics market Operating environment Basic Strategy in China Uninterrupted economic growth Rural Areas 9Sustained double- double-digit growth in the diagnostics Urban A
Slide 41: Strengthen the diagnostics business [Asia-Pacific]
Strengthen the diagnostics business [Asia-Pacific] Increase diagnostics market share Operating environment Basic Strategy in Asia- Asia-Pacific Growing inter- inter-regional gap in customer needs Advanced Areas 9Shift to higher models in advanced areas Provide solutions 9Greater adoption of inst
Slide 42: Expand business fields for the healthcare [Japan]
Expand business fields for the healthcare [Japan] Promote the solutions business and improve efficiency in sales/service Operating environment Basic Strategy in Japan Continued downward pressure on medical fee Expand new businesses reimbursements Improve profitability University Hospitals Nation
Slide 43: Core technology roadmap
Core technology roadmap Expand business domains by creating technological synergies Create Markets by Generating New Value Life science Compound/Integrated technology Expansion of technological coverage Software Development ＣＮＡ International Reagents Reagent Development Corporation Develop High-Valu
Slide 44: Strengthen the Manufacturing system
Strengthen the “Manufacturing” system [R&D] Develop high-value-added products that tap proprietary technology and advantages R&D investments External environment 12 R&D investments(overall) 20 Major competitors making aggressive investments in cancer and R&D investments（LS） R&D investments ratio 1
Slide 45: Startup of the life science business
Startup of the life science business Postoperative Technology for Accelerate drive to boost Expansion of business scope treatment chemosensitivity prediction Cancer management market recognition Postoperative Technology for recurrence Provider of valuable tests designed for staging prediction diseas
Slide 46: Targets for the life science business
Targets for the life science business （in billions of JPY) Operating Income Sales Occational gain 60 Changes in the operating environment, such as 50 regulatory changes and technological breakthroughs, 40 may cause these forward- forward- 30 looking statements about the commercialization plan for th
Slide 47: END
Challenging the Frontiers of Healthcare Testing END
Slide 48: Forward-Looking Statements
Forward-Looking Statements This material contains forward-looking statements about Sysmex Corporation and its group companies (the Sysmex Group). These forward-looking statements are based on current judgments and assumptions of the Sysmex Group in light of the information currently available to it,
Slide 49: Appendix: Mid-term management targets
<Appendix> Mid-term management targets Consolidated PL （in millions of JPY） FY2005 FY2006 FY2007 Amount Change Amount Change Amount Change Japan 35,000 104.8% 36,500 104.3% 38,000 104.1% International 51,000 117.2% 60,000 117.6% 72,000 120.0% Net sales 86,000 111.8% 96,500 112.2% 110,000 114.0% R&