Terumo Corporation · TSE:4543
Terumo — Q1 FY2019 Earnings Presentation
21 slides from Terumo's earnings presentation, Aug 8, 2019
Slide 1: Financial Results for the First Quarter of Fiscal Year Ending March 31, 2020 (FY2019)
Financial Results for the First Quarter of Fiscal Year Ending March 31, 2020 (FY2019) Terumo Corporation Chief Accounting and Financial Officer Naoki Muto August 8, 2019
Slide 2: Profit Above the Guidance with Double Digit Growth
Profit Above the Guidance with Double Digit Growth (billion JPY) YoY% FY18 Q1 FY19 Q1 YoY% (FXN) Revenue 143.0 152.5 +7% +9% Gross Profit 79.9 (55.8%) 85.2 (55.8%) +7% +9% SG&A Expenses 43.5 (30.4%) 44.5 (29.2%) +2% +4% R&D Expenses 11.3 ( 7.9%) 11.8 ( 7.8%) +5% +4% Other Income and Expenses 0.8 0.4
Slide 3: Adjusted Operating Profit Variance Analysis
Adjusted Operating Profit Variance Analysis (billion JPY) 0.1 0.6 Gross 0.4 margin Price MDR 1.2 -0.2 SG&A 0.7 0.0 IT increase 1.0 7.2 invest- R&D Others ment increase FX -0.2 4.7 G/P increment 33.9 by sales 4.6 increase 30.5 29.2 25.9 FY18 Q1 FY18 Q1 FY19 Q1 FY19 Q1 Operating Adjusted Adjusted Oper
Slide 4: Revenue by Region
Revenue by Region FY19 Q1 FY18 Q1 Revenue Year-on-Year Revenue Comparison 100% = 152.5 B JPY billion JPY YoY% Comments ( ) FXN Japan : TIS business in Cardiac and Vascular Company returned to double digit growth. All companies achieved positive growth 46.0 Japan +4% Europe : Cardiac and Vascular Com
Slide 5: Revenue by Business Segment
Revenue by Business Segment FY19 Q1 FY18 Q1 Revenue Year-on-Year Revenue Comparison 100% = 152.5 B JPY billion JPY YoY% Comments ( ) FXN Cardiac Driven by TIS business returning to 88.5 +11% double digit growth as well as 58% and 79.5 (+14%) Neurovascular business with 30% Vascular growth 39.8 +2% G
Slide 6: Cardiac and Vascular: Double Digit Growth in Revenue and Profit
Cardiac and Vascular : Double Digit Growth in Revenue and Profit (billion JPY) FY18 Q1 FY19 Q1 YoY% Major Topics Impact ( ) FXN 88.5 79.5 TIS : Returned to double digit growth in/outside JP +6.0 Neurovascular : 30% growth with solid start of WEB +11% Revenue in US +2.8 (+14%) CV : Affected by recalc
Slide 7: General Hospital: A Start Largely in Line with the Guidance
General Hospital : A Start Largely in Line with the Guidance (billion JPY) FY18 Q1 FY19 Q1 YoY% Major Topics Impact ( ) FXN General hospital products : Impact of the financial challenge in Indonesian national health insurance -0.3 38.8 39.8 Pharmaceutical and nutrition : Solid growth in +2% Pain man
Slide 8: Blood Management: Revenue Slightly Behind the Plan, Profit as Planned
Blood : Revenue Slightly Behind the Plan, Management Profit as Planned (billion JPY) FY18 Q1 FY19 Q1 YoY% Major Topics Impact ( ) FXN 24.6 24.2 Blood center products : Recoil from the brisk -2% Revenue sales in FY18 Q4 mainly in overseas -0.4 (+1%) Therapeutic apheresis : Recoil of replacement with
Slide 9: Major Topics in FY19 Q1
Major Topics in FY19 Q1 Pursued work style reform through introducing a staggered working hours and improving telework system (Apr) Corporate Established new group identity: newly instituted "Core Values" (Apr) Introduced restricted stock remuneration plan (Jun) Launched a full-scale sales o
Slide 10: New Products Pipeline in FY19
New Products Pipeline in FY19 Category Products Region Launch Category Products Region Launch Closure device for distal General Next generation of syringe pump Access radial approach JP hospital JP Narcotic analgesic for EU, postoperative pain management Coronary PTCA balloon JP Asia Pharma- (Fentan
Slide 11: Enhances Coronary Interventional Product Portfolio
Enhances Coronary Interventional Product Portfolio Secured exclusive global rights to Orchestra BioMed's Virtue® Sirolimus-Eluting Balloon (released on June 13th) The first and only non-coated drug-eluting angioplasty balloon that delivers a proprietary bioabsorbable, sustained-release formulation
Slide 12: Reference
Reference ~TERUMO 42/21
Slide 13: FY19 Q1 Revenue and Growth by Region
FY19 Q1 Revenue and Growth by Region (billion JPY) Business Overseas Grand Japan Segment Subtotal Europe Americas China Asia Total Cardiac and 12.1 76.4 22.1 33.7 11.7 8.8 88.5 Vascular (+8%) (+15%) (+9%) (+11%) (+36%) (+21%) (+14%) Out of C&V Interventional 9.2 63.2 18.0 26.7 11.1 7.4 72.4 (+9%) (+
Slide 14: Operating Expenses
Operating Expenses (billion JPY) FY18 Q1 FY19 Q1 YoY YoY% YoY% (FXN) Salaries & Wages 21.7 21.9 +0.2 +1% +3% Sales Promotion 4.5 4.9 +0.4 +9% +11% Logistical Costs 3.2 3.5 +0.2 +7% +9% Depreciation & 3.4 4.5* +1.1 +32% +33% Amortization Others 10.7 9.7* -1.0 -9% -8% SG&A Expenses Total 43.5 44.5 +1.
Slide 15: Quarterly Results
Quarterly Results (billion JPY) FY18 Q1 Q2 Q3 Q4 FY19 Q1 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Revenue 143.0 142.0 158.6 155.9 152.5 Gross Profit 79.9 74.7 87.6 84.3 85.2 (55.8%) (52.6%) (55.2%) (54.1%) (55.8%) SG&A Expenses 43.5 43.5 45.0 46.7 44.5 (30.4%) (30.5%) (28.4%) (29.9%) (29.2%
Slide 16: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit : Adjustments (billion JPY) FY18 Q1 FY19 Q1 Operating profit 25.9 29.2 Adjustment 1. Amortization of acquired +3.8 +4.0 intangible assets Adjustment 2. Non-recurring profit or loss +0.9 +0.8* Adjusted operating profit 30.5 33.9 <General examples of adjustment items> * FY19
Slide 17: CAPEX and R&D Expenses
CAPEX and R&D Expenses (billion JPY) Amortization of Amortization Expand investment in 75.0 acquired of acquired production capacity and intangible assets intangible and goodwill assets 60.8 space as well as IT in FY19 Under IFRS since FY17 49.0 Depreciation includes 45.4 43.6 42.0 44.0 39.1 a
Slide 18: Cash Flows
Cash Flows Operating CF Investing & Financing CF (billion JPY) +19.2 -32.4 8.4 12.5 Income taxes Depreciation 13.7 and amortization Working 28.8 capital increase 18.3 Profit CAPEX before 10.0 Others 123.0 tax Dividends 4.0 109.8 Cash at the CAPEX = C.i.P. record basis Cash at the end of FY18 Cash at
Slide 19: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (billion JPY) USD EUR CNY Revenue 1.7 0.8 2.2 Adjusted Operating 0.0 0.5 1.2 Profit <Reference> Impact when JPY is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating -0.1 1.0 6.5 1.3 1.9 3
Slide 20: The Status of Convertible Bonds
The Status of Convertible Bonds Detail of the bonds (issued in Dec. 2014) *After two-for-one stock split implemented in Apr. 2019 Aggregate Contingent Number of shares Conversion price Maturity principal amount Coupon conversion trigger required to be issued (JPY) (billion JPY) price (JPY) for con
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