Terumo Corporation · TSE:4543
Terumo — Q3 FY2022 Earnings Presentation
27 slides from Terumo's earnings presentation, Feb 9, 2023
Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023 (FY2022)
Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2023 (FY2022) February 9, 2023 Naoki Muto Chief Accounting and Financial Officer 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: Highlights
Highlights Revenue Highest-ever as a three-month result All regions including China grew year on year even when excluding FX Operating Profit Exceed 30% growth year on year and much more growth quarter on quarter Assertive in pricing with expanding segments and regions Portfolio rationalization (nut
Slide 4: P&L Results
P&L Results Revenue: Highest-ever quarterly and Q3 YTD revenue Operating profit in Q3 stand alone increased significantly both YoY and QoQ, including profit from sale of the nutrition business that was part of HCS in TMCS Change 100M JPY FY 21 Q3 YTD FY 22 Q3 YTD Change excluding FX FY21 Q3 FY22 Q3
Slide 5: Operating Profit Variance Analysis (Q3)
Operating Profit Variance Analysis (Q3) (100M JPY) G/P increment by sales increase: 375 Because of demand recovery and new products Pricing Gross margin: +10 Gross FX Continuous macro environment impact margin SG&A R&D G/P Reimbur- Price: increment sement by Price increase doubled compared to Q2 pri
Slide 6: Operating Profit Variance Analysis (Q3 YTD)
Operating Profit Variance Analysis (Q3 YTD) (100M JPY) G/P increment by sales increase: Because of demand recovery and new products Gross margin: Gross Pricing Continuous macro environment impact G/P margin +17 increment SG&A FX Price: by Reimbur- R&D Assertive in pricing with expanding segments sal
Slide 7: Revenue by Region
Revenue by Region C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, TIS: Interventional Systems, CV: Cardiovascular, TA: Terumo Aortic (Vascular Graft), HCS: Hospital Care Soplutions, PS: Pharmaceutical Solutions FY22 Q3 YTD Revenue (100M JPY) Comments YoY cha
Slide 8: C&V: 6% growth excluding FX
C&V: 6% growth excluding FX. China grew high-single digit Segment profit improved both YoY and QoQ due to FX and expense control (100M JPY) Q3 YTD Q3 YTD Q3 Comments YoY ( ) FXN 3,589 TIS: Expanded sales of PTCA guidewire including new products in the therapeutic field, closure device +441 2,944 and
Slide 9: TMCS: HCS and PS
TMCS: HCS: Japan demand showing signs of recovery PS: New products added, rapid growth Pricing action in Japan to offset macro environment impact (100M JPY) Q3 YTD Q3 YTD Q3 Comments YoY ( ) FXN HCS In infusion area, medical devices and 1,387 1,455 drugs are showing signs of recovery in 1,290 Hospit
Slide 10: TBCT: Blood centers outside Japan strong
Blood centers outside Japan strong, maintaining double-digit growth excluding FX TBCT: Update for plasma innovation; IDE approval for nomogram ver.2 last weekend (100M JPY) Q3 YTD Q3 YTD Q3 Comments YoY ( ) FXN 1,134 Blood Centers: Outside Japan remains strong. Sales increased in products including
Slide 11: Guidance Revision
Guidance Revision （ ）excluding FX FY22 FY22 FY21 Revision Previous Revised YoY Amount($100M) Actual amount guidance guidance (C)÷(A) (A) (C)-(B) (B) (C) Revenue 7,033 7,750 8,150 +400 +16% (+5%) Operating profit 1,160 1,320 1,220 -100 +5% (-2%) （%） 16.5% 17.0% 15.0% Adjusted operating profit 1,344 1
Slide 12: Dividend Guidance Revision
Dividend Guidance Revision Achieve 30% dividend payout ratio FY22 annual dividend of 40 yen (2 yen increase from the previous guidance) Previous guidance (Q2) Current guidance 38.0 yen 40.0 yen Dividend / share (yen) Interim 19 yen Interim 19 yen Period end 19 yen Period end 21 yen Dividend payout r
Slide 13: New Measures to Raise Corporate Value
New Measures to Raise Corporate Value More assertive growth strategy More assertive M&A promotion Focus areas: While maintaining multidirectional perspective, focus on areas such as Vein, CDMO and Diabetes Accelerate profitability improvement Continue worldwide price policy review in FY23 Get VC2 re
Slide 14: Reference
Reference ©TERUMO CORPORATION 14 / 26
Slide 15: Product Pipeline and Major Topics
Product Pipeline and Major Topics *C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, TIS: Terumo Interventional Systems, TA: Terumo Aortic (Vacular Graft), HCS: Hospital Care Solutions, LCS: Life Care Solutions Major Product Launch, Approval Status Till FY21
Slide 16: Revenue by Segment and Region
Revenue by Segment and Region ©TERUMO CORPORATION 16 / 26
Slide 17: Quarterly Trend of Revenue and Operating Profit
Quarterly Trend of Revenue and Operating Profit Revenue: 20% growth YoY in Q3, highest-ever for a quarter. 4% growth QoQ Operating profit: 31% growth YoY in Q3. 47% growth QoQ (100M JPY) 2,147 2,060 1,973 1,788 1,798 1,717 1,729 1,653 1,652 1,520 TBCT（Revenue） 1,313 TMCS（Revenue） C&V（Revenue） Total（
Slide 18: P&L (QoQ)
P&L (QoQ) (100M JPY) FY21 Q3 Q4 FY22 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Revenue 1,788 1,798 1,973 2,060 2,147 Gross Profit 926 (51.8%) 905 (50.3%) 1,016 (51.5%) 1,054 (51.1%) 1,114 (51.9%) SG&A Expenses 507 (28.4%) 528 (29.4%) 566 (28.7%) 605 (29.4%) 615 (28.6%) R&D Expenses
Slide 19: SG&A (QoQ)
SG&A (QoQ) (100M JPY) FY21 Q3 Q4 FY22 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Labor 255 256 298 312 316 Promotion 44 45 46 44 52 Logistics 39 41 44 47 49 Depreciation 51 54 56 59 60 Others 118 132 123 142 138 SG&A total 507 528 566 605 615 （%） (28.4%) (29.4%) (28.7%) (29.4%) (28.6
Slide 20: SG&A (YoY)
SG&A (YoY) (100M JPY) Change Change Change FY21 FY22 +/- vs. FY21 excluding FY21 Q3 FY22 Q3 +/- vs. FY21 Q3 YTD Q3 YTD Q3 YTD FX impact Q3 Salaries & Wages 753 926 172 23% 7% 255 316 61 24% Sales Promotion 114 142 27 24% 13% 44 52 8 17% Logistical Costs 117 140 24 21% 9% 39 49 10 26% Depreciation an
Slide 21: Adjusted Operating Profit amount
Adjusted Operating Profit amount (100M JPY) FY 21 FY 22 FY21 FY22 Q3 YTD Q3 YTD Q3 Q3 Operating Profit 945 935 286 375 Adjustment 1. Amortization of 118 144 39 49 acquired intangible assets Adjustment 2. Non-recurring profit or loss 9 17 5 -32 Adjusted Operating Profit 1,072 1,096 330 392 <General e
Slide 22: CAPEX, Depreciation and R&D Expenses
CAPEX, Depreciation and R&D Expenses (100M JPY) FY22 FY19 FY20 FY21 (100MFY22 JPY) Q3 YTD Guidance CAPEX 895 772 692 511 750 Depreciation 477 484 532 474 635 Amortization of 157 146 161 144 173 acquired intangible assets Others 320 338 371 330 462 CAPEX = C.i.P. record basis, lease depreciation (IFR
Slide 23: Cash Flows (Q3 YTD)
Cash Flows (Q3 YTD) Operating CF Investing & Financing CF (100M JPY) +749 -1,177 248 524 Income 448 taxes, etc. Depreciation 921 and Working 511 amortization capital gains and losses CAPEX 501 Profit before 113 Acquisition 279 2,053 tax of treasury Dividends Others 1,624 shares Cash at the end CAPEX
Slide 24: Cash Flows (Q3)
Cash Flows (Q3) Operating CF Investing & Financing CF (100M JPY) +145 -647 181 109 Income 302 taxes, etc. 375 Depreciation Working 183 and amortization capital Profit gains and CAPEX 357 before losses tax 143 35 2,126 Acquisition of treasury Dividends Others 1,624 shares Cash at the end CAPEX = C.i.
Slide 25: FY22 FX Impact Breakdown (Flow, Stock)
FY22 FX Impact Breakdown (Flow, Stock) FX impact vs FY21 +8.4B JPY Flow Q3 YTD +9.0B JPY: EUR, CNY appreciation positive impact FY21 Q3 YTD FY22 Q3 YTD Rate (JPY) Average rate during Average rate during Variation period period EUR 131 141 10 CNY 17.3 19.9 2.6 Stock Q3 +2.5B JPY, Q3 YTD -0.6B JPY: FX
Slide 26: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity (100M JPY) Annual inpact of 1 JPY depreciation USD EUR CNY Revenue 20 9 38 Adjusted Operating Profit 1 5 16 <Reference> Impact when JPY depreciation 10% North Latin Europe Asia America America EUR Zone Others CNY Others Adjusted Operating Profit 7 10 74 13 31 36 ©TERUMO
Slide 27: <“TERUMO
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