Terumo Corporation · TSE:4543

Terumo — FY2011 Earnings Presentation

32 slides from Terumo's earnings presentation, May 10, 2012

  1. Slide 1: Financial Results for the FYE Mar. 2012 & Initiatives for the FYE Mar. 2013

    Financial Results for the FYE Mar. 2012 & Initiatives for the FYE Mar. 2013 Terumo Corporation May 10, 2012

  2. Slide 2: Consolidated Results for FYE Mar. 2012

    Consolidated Results for FYE Mar. 2012 (billion of yen) FYE Mar. 2011 FYE Mar. 2012* YoY% Net Sales 328.2 386.7 +18% Gross Profit 170.8 (52.0%) 204.6 (52.9%) +20% SG&A Expenses 108.2 (32.9%) 141.6 (36.6%) +31% R&D Expenses 20.4 ( 6.2%) 24.3 (6.3%) +19% Operating Income 62.6 (19.1%) 63.0 (16.3%) + 1%

  3. Slide 3: Terumo BCT Stand Alone

    Terumo BCT Stand Alone (billion of yen) YoY% FYE Mar. 2012 (Constant Currency) Net Sales 45.1 + 8% Gross Profit 27.8 (61.6%) + 6% SG&A Expenses 17.3 (38.3%) + 17% R&D Expenses 2.9 (6.5%) - 4% Operating Income 10.5 (23.3%) - 9% Ordinary Income 10.3 (22.9%) If excluding expenses for integration, opera

  4. Slide 4: Existing Business

    Excluding BCT & Harvest Existing Business (billion of yen) Constant FYE Mar. 2011 FYE Mar. 2012 YoY% Currency Net Sales 328.2 339.8 +4% +6% Gross Profit 170.8 (52.0%) 175.5 (51.7%) +3% +6% SG&A Expenses 108.2 (32.9%) 111.3 (32.8%) +3% +5% Operating Income 62.6 (19.1%) 64.2 (18.9%) +3% +8% Ordinary I

  5. Slide 5: Net Sales (by Region)

    Excluding BCT & Harvest Net Sales (by Region) (billion of yen) Consolidated: +4%(+7%) FYE FYE Mar. 2011 Mar. 2012 ( ) Constant Currency Japan Outside of Japan +2% 56.6 +6% +1% Europe (+6%) 57.5 (+8%) -5% 57.0 Americas (+3%) 53.9 177.1 188.5 +28% 8.9 149.2 151.3 China (+38%) 11.4 Asia & +7% 26.7 Othe

  6. Slide 6: Net Sales (by Business Segment)

    Excluding BCT & Harvest Net Sales (by Business Segment) (billion of yen) -2% +10% (-1%) (+14%) FYE FYE Mar. 2011 Mar. 2012 +9% ( ) Constant Currency (+13%) 149.5 152.8 158.8 144.6 +10% 24.5 26.7 (+10%) 4.3 4.8 General Cardiac & Blood Consumer Hospital Vascular Management Healthcare 2012/5/10 ©Terumo

  7. Slide 7: Gross Profit Variance Analysis

    Excluding BCT & Harvest Gross Profit Variance Analysis 0.3 0.4 Shift to 0.3 Foreign 0.2 highly Cost profitable exchange Prices down products 0.7 1.0 Volume Cost for 52.0% Quality System improvement 51.7% FYE Mar. 2011 FYE Mar. 2012 Average Exchange Rate FYE Mar. 2011 FYE Mar. 2012 US$ 86 yen 79 yen

  8. Slide 8: SG&A Expenses

    Excluding BCT & Harvest SG&A Expenses (billion of yen) FYE Mar. 2011 FYE Mar. 2012 YoY YoY% Salaries & Wages 38.9 39.0 + 0.1 +0% Sales Promotion 10.5 11.1 + 0.6 +6% Logistical Costs 9.6 10.0 + 0.4 +4% Depreciation & 4.7 4.6 - 0.1 -2% Amortization Others 24.1 25.4 + 1.3 +5% General Admin Total 87.8 (

  9. Slide 9: CV Business: Return to Profitability in FYE Mar. 2015

    CV Business: Return to Profitability in FYE Mar. 2015  TCVS’s impact on overall CV business sales is limited  Once temporary investment in quality management system settled, then profit to recover 400 40 Sales 売上 (billion of yen) Operating Income 営業利益 300 30 200 20 100 10 00 -100 -10 FYE Mar.2011

  10. Slide 10: Dividend Forecast for Year-end of FYE Mar. 2012

    Dividend Forecast for Year-end of FYE Mar. 2012  Basic policy for profit allocation  It is to stably increase dividends to shareholders in accordance with business performance, investment plan and other aspects. In order to clarify the policy, the management will aim for the target dividend payout

  11. Slide 11: Forecast for FYE Mar. 2013

    Forecast for FYE Mar. 2013 2012/5/10 ©Terumo Corporation 11/32

  12. Slide 12: Forecast for FYE Mar. 2013

    Forecast for FYE Mar. 2013 (billion of yen) FYE Mar. 2012 FYE Mar. 2013 YoY% Actual Forecast Net Sales 386.7 410.0 +6% Operating Income 63.0 60.0 -5% (Excl. amortization of goodwill) 70.6 67.6 -4% Ordinary Income 59.2 58.0 -2% Net Income 24.2 34.0 +41% US$ 79 yen 80 yen Average Exchange Rate EUR 109

  13. Slide 13: Still, Maintain Investments in Growth Strategy

    Still, Maintain Investments in Growth Strategy (billion of yen) Operating Income Recovery Revision of JP 3+ of TCVS reimbursement price business 63 Effect of ▲7 7+ increased production 60 FYE Mar. 2012 Mar. 2013 Mar. 2014 2012/5/10 ©Terumo Corporation 13/32

  14. Slide 14: Factors Affecting Operating Income

    Factors Affecting Operating Income  Factors affecting the decline in operating income  Revision of reimbursement price in Japan  Increase in depreciation expense  Investment in quality system improvement  Investment in growth strategy  New product development and clinical studies  Nobori®: cl

  15. Slide 15: Sustainable Profit Growth

    Sustainable Profit Growth  At constant currency, operating income in subsequent FY of reimbursement price revision has recovered and returned to growth path Operating Income 80 800 (billion of yen) (at constant currency) 700 70 63 Year of when reimbursement price 60 600 60 is revised in JP 500 50 4

  16. Slide 16: Integrate Consumer Healthcare into General Hospital

    Integrate “Consumer Healthcare” into “General Hospital” MARKET Medical General Hospital Institutions Business Consumer Healthcare Dispensing Business Pharmacy Bring Consumer Healthcare Electronics business back to medical front Retail Stores 2012/5/10 ©Terumo Corporation 16/32

  17. Slide 17: Growth Opportunities

    Growth Opportunities 2012/5/10 ©Terumo Corporation 17/32

  18. Slide 18: Growth Opportunities: Business x Region x New Field

    Growth Opportunities: Business x Region x New Field  Business: 5 Growth Opportunities incl. Blood Management, Global D&D, Minimally Invasive Treatment  Region: Boost the strategies in emerging countries  New field: Further growth by newly gained technologies 2012/5/10 ©Terumo Corporation 18/32

  19. Slide 19: Business: Terumo BCT Kicked into Gear

    Business: “Terumo BCT” Kicked into Gear  CaridianBCT & Terumo transfusion becomes “Terumo BCT” and kicked into gear in Apr. 2012  HQs: Colorado, U.S., President: David Perez  Global leadership  Corporate management meeting held at its HQs in Colorado, US  Seamless integration of sales & custome

  20. Slide 20: Business: Intradermal Injection Device for Vaccine

    Business: Intradermal Injection Device for Vaccine  Agreement w/ Daiichi Sankyo to co-develop a new vaccine utilizing Terumo’s intradermal injection device  Only with 1/5 of conventional volume of vaccine, the effectiveness equal to or greater can be expected *  Rapid effect to be exerted *  Imp

  21. Slide 21: Business: More Development Projects in Minimally Invasive Treatment

    Business: More Development Projects in Minimally Invasive Treatment New Poduct Development Projects (# of projects) Minimally Invasive Treatment 70 64 58 Newly added 60 16 50 10 projects 40 Launched 30 20 10 0 As of Announcement FYE Mar. 2012 中計発表時 Mid-term plan 2012/3期 Primary new products launched

  22. Slide 22: Starting OFDI in Global Market

    Starting OFDI in Global Market  Clear image for even safer and more reliable intervention  High resolution to precisely diagnose intravascular condition and stent apposition  Superior deliverability and cross-ability in delivery catheter  EU launch to be in FYE Mar.2013 and JP in FYE Mar.2014 

  23. Slide 23: Peripheral Self-expanding Stent to Be Launched in JP

    Peripheral Self-expanding Stent to Be Launched in JP  Self-expanding stent for peripheral vascular  Even more flexible and durable  High long-term patency  The world first rapid exchange system for peripheral stent  Precise and easy stent deployment  Sales projection: 0.3B yen (FYE Mar.2013) a

  24. Slide 24: Region: China–New Businesses to Boost Growth

    Region: China–New Businesses to Boost Growth  Establish the model of “local production & sales” ODM agreement of infusion pumps: Beijing KellyMed Co., Ltd OEM supply agreements of infusion set: Shenzhen Baoan Medical Supply Co., Ltd Dragon Heart Medical Devices Co., Ltd Establish a joint venture

  25. Slide 25: New Field: U.S. Harvest to Address Critical Limb Ischemia

    New Field: U.S. Harvest to Address Critical Limb Ischemia  Treatment for CLI (Critical Limb Ischemia)  Injection of BMAC(autologous bone marrow concentrate) into leg to form new blood vessels  Progress  EU: under review for CE Mark (Launch to be in FYE Mar.2013)  U.S.: under clinical study (Lau

  26. Slide 26: Reference

    Reference @TERUMO

  27. Slide 27: Consolidated Q4 Results

    Consolidated Q4 Results (billion of yen) Q4 Q4 YoY% FYE Mar. 2011 (*) FYE Mar. 2012 Net Sales 84.0 97.8 +16 % Gross Profit 43.6(52.0%) 50.7 (51.8%) +16 % SG&A Expenses 29.1(34.7%) 37.5 (38.3%) +29 % R&D Expense 5.9 (7.0%) 6.7 (6.9%) +14% Operating Income 14.5(17.3%) 13.2 (13.5%) -9 % Ordinary Income

  28. Slide 28: Consolidated 2H Results to Forecast

    Consolidated 2H Results to Forecast (billion of yen) 2H Forecast 2H Results Achievement Impact of currency Net Sales 192.3 196.0 102% +3.1 (1.6% P addition on achievement) Operating Income 28.0(14.6%) 28.4(14.5%) 101% +0.7 (2.5% P addition on achievement) Ordinary Income 25.7(13.4%) 27.9(14.2%) 109%

  29. Slide 29: Gross Profit, SG&A Expenses, Operating Income

    Excluding BCT & Harvest Gross Profit, SG&A Expenses, Operating Income (%) Gross Profit 52.0 51.6 54.2 50.8 50.1 SG&A Expenses 34.7 31.3 33.1 32.6 34.1 Operating Income 17.3 20.3 21.1 18.2 16.0 Ｑ4 Ｑ1 Ｑ2 Ｑ3 Ｑ4 FYE Mar. 2011 FYE Mar. 2012 (Quarterly: 3 months) 2012/5/10 ©Terumo Corporation 29/32

  30. Slide 30: R&D Expenses

    R&D Expenses (billion of yen) 30 +19% 25 +16% 20 24.3 15 20.4 17.2 17.5 10 15.8 5 0 FYE Mar.2008 Mar. 2009 Mar. 2010 Mar. 2011 Mar. 2012 2012/5/10 ©Terumo Corporation 30/32

  31. Slide 31: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates 130 EUR (FYE Mar. 2011) EUR (FYE Mar. 2012) 110 117 110 US$ (FYE Mar. 2011) 104 104 90 82 78 77 79 70 US$ (FYE Mar. 2012) Q1 Q2 Q3 Q4 (Quarterly: 3 months) 2012/5/10 ©Terumo Corporation 31/32

  32. Slide 32: IR Contact

    IR Contact Terumo Corporation Corporate Communication (IR) Dept. E-mail: [email protected] 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 i

Terumo — FY2011 Earnings Presentation on 6ix