Terumo Corporation · TSE:4543
Terumo — Q3 FY2018 Earnings Presentation
22 slides from Terumo's earnings presentation, Feb 7, 2019
Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2019
— ~TERUMO Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2019 (FY2018) Terumo Corporation Managing Executive Officer Kazuaki Kitabatake February 7, 2019
Slide 2: Overall results for the third quarter
I, Kitabatake, will now explain the financial results for the third quarter of the fiscal year ending March 31, 2019. This first slide shows the overall results; the Ashitaka Factory shipping delay issue has been resolved, and third quarter performance was good. This has also resulted in our year‐to
Slide 3: Third quarter standalone results
This next slide explains in more detail the third quarter standalone results. It shows the revenue, operating profit, and adjusted operating profit of the first, second, and third quarters of this fiscal year, FY2018. The shipping delays at Ashitaka caused a large decrease in the second quarter, but
Slide 4: Progress toward second half guidance
The next slide shows our progress toward second half guidance. I just mentioned that the third quarter result were our best ever for a single quarter. However, our progress toward second half guidance is at exactly 50% for revenue and profit for the year. Operating profit and adjusted operating prof
Slide 5: Adjustments resulting in adjusted operating profit
The next slide details the specific adjustments that result in adjusted operating profit. The major adjustment item is amortization of acquired intangible assets. Temporary gains and losses are shown in detail in the bottom‐right chart, with four of the items having already been discussed in our fir
Slide 6: Adjusted operating profit variance analysis
This next slide shows the adjusted operating profit income variance analysis. It includes the adjustments that we saw on the previous slide; the adjustment amount in FY17 was 11.0 billion yen. The adjustment amount in FY18 was 12.7 billion yen. The other factors of profit variance are shown on the g
Slide 7: Revenue by region
The next slide shows revenue by region. In Japan, in addition to the General Hospital and Blood Management companies continuing to perform well, the Cardiac and Vascular Company started recovering; this brought year‐on‐year results back to positive, and year‐to‐date from ‐2% progress back to flat in
Slide 8: Revenue by company
The next slide shows revenue by company. Cardiac and Vascular Company, which had been negative 3% in the first half, turned positive in the third quarter. General Hospital Company continued to show strong results. Blood Management was most affected of all three companies by FX impacts. This was due
Slide 9: Cardiac and Vascular Company results
Next, I will explain company results in detail. First, Cardiac and Vascular Company: In the TIS business, the negative year‐on‐year amount shrank significantly after the much tougher first half. Year‐on‐year growth returned to positive outside Japan. In Neurovascular, hydrogel coil for aneurysm and
Slide 10: General Hospital Company results
Next is General Hospital Company: Inside and outside Japan, and in all businesses, we saw a continuation of strong results, especially in the alliance business. In adjusted operating profit, general hospital company maintained a very high 18%; this is thanks to strong revenue growth in high‐value‐ad
Slide 11: Blood Management Company results
Next is Blood Management Company. The company’s year‐on‐year adjusted operating growth was negative, and there are three negative factors currently at play: One is the year‐on‐year difference resulting from a large, one‐time therapeutic apheresis sale that happened in the previous year but not this
Slide 12: Major topics
The next slide shows major topics. As a group, Terumo has won a Good Design Award for 23 consecutive years, and this year we received it for a record five products. By business, the Ryurei PTCA balloon was launched, further boosting sales of the Ultimaster Tansei. We also received FDA PMA approval f
Slide 13: New product pipeline in FY2018
The last slide is our new product pipeline in FY2018. Most products remain on schedule, with a few experiencing delays resulting from the shipping delays at Ashitaka Factory; these may end up released in FY19. Thank you for your attention. 13
Slide 14: Reference
“TERUMO Reference 14/22 14
Slide 15: Quarterly Results
Quarterly Results FY17Q3 Q4 FY18Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (billion yen) Revenue 152.3 150.8 143.0 142.0 158.6 83.2 80.7 759 74.7 87.6 Gross Profit (54.6%) (53.5%) (55.8%) (52.6%) (55.2%) SG&A Expenses 43.8 45.9 43.5 43.5 45.0 (28.7%) (30.4%) (30.4%) (30.5%) (28.4%) 1
Slide 16: FY18 Q3 Revenue and Growth by Region
FY18 Q3 Revenue and Growth by Region Business Outside of Japan Japan : : Segment Subtotal Europe | Americas China Cardiac and 35.4 205.6 62.3 91.9 26.7 Vascular (-13%) (44%) (42%) (45%) (45%) Out of C&V one 26.6 166.6 50.1 711 24.9 systems* (14%) (14%) (+2%) (+6%) (#5%) General 97.8 28.1 7.0 6.2 19
Slide 17: Operating Expenses
Operating Expenses (billion yen) FY17 FY18 YoY% ee (AN) Salaries & Wages 62.6 65.5 +2.9 Sales Promotion 12.6 13.3 +0.7 +6% +6% Logistical Costs 9.4 10.1 +0.7 +7% +8% Depreciation & 10.6 10.4 0.2 1% 1% Amortization Others 30.0 32.7 +2.7 +9% +9% 125.2 132.0 SG&A Expenses Total (28.7%) (29.8%) +6.8 +5%
Slide 18: CAPEX and R&D Expenses
CAPEX and R&D Expenses Amortization Amortization (billion yen) of acquired of acquired 60.0 Expand investment in Intangibles intangible production capacity and and Goodwill assets space as well as IT a 54 45.4 43.6 42.0 43.0 infrastructure in FY18 35.7 @ Depreciation Includes 31.5 32.6 age ag a1, am
Slide 19: Essen acquisition payment note
Essen等買収は、連結CF計算書と整合させているため、実際支払い額と乖離。実 際支払い額は879M元×0.9＝791.1M元(10%はエスクロ‐)、AR換算(16.6)すると 13,132M。ここからEssen保有Cashを差し引いた額11,277MがCF数値。残り753Mは VAKが買収したSerom分で、Essenと同様の原理で計算。 19
Slide 20: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of one-yen depreciation (billion yen) P| fk fw Revenue 1.6 0.8 2.0 Adjusted Operating Profit 0.0 O'S 1.0 <Reference> Impact when yen is depreciated by 10% North | Latin EMEA America | America Adjusted Operating -0.1 0.9 6.0 11.3} ihZ/ 3.3 Profit ~“TERUMO 20
Slide 21: The Status of Convertible Bonds
The Status of Convertible Bonds ® Detail of the bonds (Issued in Dec, 2014) Maturity Dec, 2019 Dec, 2021 Total Aggregate principal amount (billion yen) Conversion price (yen) 50.0 0.0% 3,853 50.0 0.0% 3,853 100.0 ™@ Status of conversion (as of Jan 31, 2019 Bonds Convertible Bonds due Dec, 2019 Conve
Slide 22: 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