Terumo Corporation · TSE:4543

Terumo — Q3 FY2012 Earnings Presentation

21 slides from Terumo's earnings presentation, Jan 31, 2013

  1. Slide 1: Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2013

    Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2013 Terumo Corporation January 31, 2013

  2. Slide 2: Consolidated Q3 Results

    Consolidated Q3 Results (billions of yen) Q3 YTD Q3 YTD YoY% Mar. 2012 Mar. 2013 Net Sales 288.9 295.7 + 2% Gross Profit 154.0(53.3%) 153.5(51.9%) - 0% SG&A Expenses 86.5(29.9%) 91.5(31.0%) + 6% R&D 17.6 (6.1%) 19.4 (6.5%) +10% Operating Income 49.9(17.3%) 42.6(14.4%) -15% (Excl. Amortization of goo

  3. Slide 3: Net Sales (by Region)

    Net Sales (by Region) (billions of yen) Consolidated: +2%(+4%) Q3 Q3 Mar. 2012 Mar. 2013 ( )Excluding Foreign Exchange Japan Outside Japan -1% 53.7 -1% +6% Europe (+6%) 52.9 (+8%) Americas +8% 57.9 (+7%) 62.8 143.3142.1 145.7153.7 +24% 10.0 China (+22%) 12.5 Asia +6% 24.0 & Others (+8%) 25.5 2013/1/

  4. Slide 4: Net Sales (by Business Segment)

    Net Sales (by Business Segment) (billions of yen) +2% +3% Q3 Q3 Mar. 2012 Mar. 2013 (+3%) (+4%) ( )Excluding Foreign Exchange +1% (+3%) 117.0119.8 118.7122.3 53.2 53.7 General Cardiac & Blood Hospital Vascular Management 2013/1/31 ©Terumo Corporation 4/21

  5. Slide 5: Q3 Net Sales (by Business Segment, JP/Outside JP)

    Q3 Net Sales (by Business Segment, JP/Outside JP) Q3 (Apr – Dec) (billions of yen) Outside Business Japan of Japan Asia & G･Total Segment Total Europe Americas China Others General 98.0 21.8 7.0 5.4 0.8 8.6 119.8 Hospital (4%) (-1%) (-4%) (-2%) (26%) (2%) (3%) Cardiac & 34.6 87.7 31.8 35.8 9.7 10.4

  6. Slide 6: Gross Profit Variance Analysis

    Gross Profit Variance Analysis (%) 0.0 0.3 0.5 Production Volume 1.0 0.3 Shift to High Foreign Profit Products Exchange Cost Reduction Prices 0.9 Cost for 53.3% Quality System Improvement 51.9% Q3 Q3 Mar. 2012 Mar. 2013 2013/1/31 ©Terumo Corporation 6/21

  7. Slide 7: SG&A Expenses

    SG&A Expenses (billions of yen) Q3 Mar. 2012 Q3 Mar. 2013 YoY YoY% Salaries & Wages 36.2 38.8 +2.6 + 7% Sales Promotion 8.7 9.0 +0.3 + 3% Logistical Costs 7.5 7.6 +0.1 + 2% Depreciation & Amortization 12.9 13.2 +0.3 + 2% Others 21.2 22.9 +1.7 + 8% General Administrative Total 86.5 (29.9%) 91.5 (31.0

  8. Slide 8: Operating Income Variance Analysis

    Operating Income Variance Analysis (billions of yen) 5.8 9.9 Revision of JP 2.7 Reimbursement Price Foreign 1.9 Increase in Gross Profit Exchange Cost for 5.0 Quality System Increase 1.8 Improvement in General Increase 49.9 Admin. in R&D Expenses Expenses 42.6 Q3 Q3 Mar. 2012 Mar. 2013 2013/1/31 ©Te

  9. Slide 9: Peripheral Stent “Misago®” Launched in Japan

    Peripheral Stent “Misago®” Launched in Japan 2013/1/31 ©Terumo Corporation 9/21

  10. Slide 10: Peripheral Artery Disease (PAD)

    Peripheral Artery Disease (PAD)  Narrowed artery in the leg caused by atherosclerosis, limiting blood flow. More than 30M patients in WW *Based on Terumo’s own research  Higher prevalence due to aging and more lifestyle diseases  Treatment shifting from surgery to endovascular intervention X-ray

  11. Slide 11: Peripheral Stent “Misago®”, Strong Launch in Japan

    Peripheral Stent “Misago®”, Strong Launch in Japan  Designed to provide optimal flexibility to prevent stent fracture caused by leg movement. Unique stent delivery mechanism for precise & easy deployment  Obtaining high reputation. Initial sales well over originally expected  Highly valued at EU

  12. Slide 12: Reference

    Reference 2013/1/31 ©Terumo Corporation 12/21

  13. Slide 13: Consolidated Results: Q1 to Q3

    Consolidated Results: Q1 to Q3 (billions of yen) Q1 Results Q2 Results Q3 Results Variance Variance % (Apr - Jun) (Jul - Sep) (Oct - Dec) Q2-Q3 Q2-Q3 Net Sales 95.9 96.0 103.9 +7.9 +8% 51.7 48.8 52.9 Gross Profit +4.1 +8% (53.9%) (50.9%) (50.9%) Operating 15.5 12.7 14.4 Income +1.7 +13% (16.1%) (13.

  14. Slide 14: Q3: Strong in Overseas C&V, Recovery in Blood Management

    Q3: Strong in Overseas C&V, Recovery in Blood Management Q3(Oct – Dec) (billions of yen) Outside Business Japan of Japan Asia & G･Total Segment Total Europe Americas China Others General 35.3 7.4 2.2 1.8 0.3 3.0 42.6 Hospital (5%) (-3%) (-12%) (-9%) (12%) (8%) (4%) Cardiac & 11.7 30.2 11.2 12.2 3.4

  15. Slide 15: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (billions of yen/year) US$ EUR Net Sales 1.7 0.7 Operating Income 0.3 0.4 2013/1/31 ©Terumo Corporation 15/21

  16. Slide 16: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (billions of yen) Mar. 2013 Q3 Mar. 2013 YoY Forecast Result CAPEX* 38.0 22.3 (59%) +4.4 Depreciation & Amortization* 32.5 23.6 (73%) +2.2 R&D Expenses 27.0 19.4 (72%) +1.8 %: Progress to forecast * Including intangibles CAPEX: acquisition basis 2013/1/31 ©Terumo Corporation 16/2

  17. Slide 17: Q3 Cash Flow

    Q3 Cash Flow  Cash was used in good balance among (billions of yen) capital investment for sustainable growth, repayment of debt, and dividend. in out Others Depreciation 11.8 & Amortization Repayment of debt 5.8 23.6 Capital investment Net Income 22.3 24.7 Dividend* 8.4 Total 48.3 Total 48.3 *Divi

  18. Slide 18: Gross Profit, SG&A Expenses, Operating Income

    Gross Profit, SG&A Expenses, Operating Income Gross (%) 51.7 53.9 50.9 50.9 Profit 51.8 SG&A Expenses (%) 36.2 38.3 37.8 37.6 37.0 Operating (%) 15.5 16.1 Income 13.5 13.3 13.9 Q3 Q4 Q1 Q2 Q3 Mar. 2012 Mar. 2013 (Quarterly: 3 months) 2013/1/31 ©Terumo Corporation 18/21

  19. Slide 19: Changes in Gross Profit (%)

    Changes in Gross Profit (%) 57.0 FY09 FY10 FY11 FY12 (%) 56.0 55.0 54.0 53.0 52.0 51.0 50.0 49.0 Ｑ１ Ｑ２ Ｑ３ Ｑ４ FY09 53.6 51.8 52.9 52.2 FY10 52.1 52.3 51.7 52.0 FY11 53.2 55.0 51.7 51.8 FY12 53.9 50.9 50.9 (Quarterly: 3 months) 2013/1/31 ©Terumo Corporation 19/21

  20. Slide 20: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates 130 ＥＵＲ(Mar. 2012) 117 110 ＥＵＲ(Mar. 2013) 104 110 103 104 98 105 ＵＳ＄(Mar. 2012) 90 82 81 79 79 80 78 77 70 ＵＳ＄(Mar. 2013) Ｑ１ Ｑ２ Ｑ３ Ｑ４ (Quarterly: 3 months) 2013/1/31 ©Terumo Corporation 20/21

  21. Slide 21: 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 — Q3 FY2012 Earnings Presentation on 6ix