Terumo Corporation · TSE:4543

Terumo — Q1 FY2021 Earnings Presentation

24 slides from Terumo's earnings presentation, Aug 4, 2021

  1. Slide 1: Financial Results for the First Quarter of Fiscal Year Ending March 31, 2022 (FY2021)

    Financial Results for the First Quarter of Fiscal Year Ending March 31, 2022 (FY2021) August 4, 2021 Naoki Muto Chief Accounting and Financial Officer Terumo Corporation

  2. 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

  3. Slide 3: Highlights

    Highlights FY21 Q1 results Revenue: Highest-ever quarterly revenue. Steady recovery in demand for Cardiac & Vascular. Positive FX impact from both USD and EUR Adjusted Operating Profit: Highest-ever quarterly adjusted operating profit. Although there were some negative factors as expected, the reven

  4. Slide 4: P&L Results

    P&L Results Revenue: Highest-ever quarterly revenue. Steady recovery in demand for Cardiac & Vascular, especially for TIS. Positive FX impact from both USD and EUR Adjusted Operating Profit: Highest-ever quarterly adjusted operating profit. The negative impact from volume-based procurement (VBP) in

  5. Slide 5: Adjusted Operating Profit Variance Analysis

    Adjusted Operating Profit Variance Analysis Gross margin (100 M JPY) G/P increment by sales increase: Positive revenue growth in all companies compared with FY20 Q1 impacted by COVID-19 Price Gross margin: -12 Despite the negative impact of lowered JP NHI SG&A FX production level as planned for inve

  6. Slide 6: Revenue by Region

    Revenue by Region Change vs. Comments on YoY% (C&V: Cardiac & Vascular, Revenue (100 M JPY) YoY% FY19 Q1 GH: General Hospital, TBCT: Blood & Cell Technologies) FY21 Q1 () FXN Japan: Double digit growth in GH with solid sales of Alliance Regional and demand recovery of daily use products in General F

  7. Slide 7: C&V: Significant revenue increase in all divisions with substantial recovery of procedures

    Significant revenue increase in all divisions with substantial recovery of procedures especially in US and EU. C&V: Double digit growth in both revenue and profit compared with FY19 Q1 (before COVID-19) (100 M JPY) Q1 Rev. Q1 Comments YoY () FXN TIS: While the COVID-19 impact remained in Japan, Lati

  8. Slide 8: Globally driven by daily use General hospital products

    Globally driven by daily use General hospital products. GH: Double digit growth in both revenue and profit compared with FY19 Q1 as well as FY20 Q1 (100 M JPY) Q1 Rev. Q1 Comments YoY () FXN General hospital products: Double digit growth driven by daily use products with a recovery of medical demand

  9. Slide 9: TBCT: Fully mitigated the declining convalescent plasma's negative impact

    Fully mitigated the declining convalescent plasma’s negative impact by solid sales of other products. TBCT: Continued increase in revenue and profit with product mix improvement and expense control (100 M JPY) Q1 Rev. Q1 Comments YoY () FXN 283 Blood center solutions: Double digit growth in whole bl

  10. Slide 10: Major Topics

    Major Topics • Selected for the global ESG investment index “FTSE4Good Index Series” Corporate and “FTSE Blossom Japan Index” • Donated Additional 1 M USD to support the COVID-19 solidarity response fund for WHO • Received approval of the additional indication to peripheral artery disease Diagnosis

  11. Slide 11: Upward Revision of FY21 Guidance

    Upward Revision of FY21 Guidance (100 M JPY) Change in Original Guidance Revised Guidance amount Revenue 6,700-6,800 6,850 +50 Operating Profit 1,070-1,130 1,200 +70 (%) (16.0-16.6%) (17.5%) Adjusted Operating Profit 1,240-1,300 1,370 +70 (%) (18.5-19.1%) (20.0%) Profit for the Year 820-865 920 +55

  12. Slide 12: FY21 Guidance by Company

    FY21 Guidance by Company Revenue Adjusted Operating Profit Comments Amount (100 M JPY) YoY% Amount (100 M JPY) % to Revenue YoY% () FXN () FXN Despite the impact from Chinese () FXN VBP of TIS products, expect double digit growth in TIS and FY19 3,506 869 25% Vascular Graft, and close to 20% Cardiac

  13. Slide 13: Reference

    Reference ©TERUMO CORPORATION 13 / 23

  14. Slide 14: FY21 New Product Pipeline

    FY21 New Product Pipeline Category Products Region Launch Category Products Region Launch Coronary Drug-eluting stent JP Infusion pump JP General Biodegradable drug-eluting EU hospital Small size syringe pump JP microsphere products Oncology Peripheral embolization coil JP FN syringe (16mm needle) J

  15. Slide 15: Revenue by Segment and Region

    Revenue by Segment and Region ©TERUMO CORPORATION 15 / 23

  16. Slide 16: Quarterly Trend of Revenue and Operating Profit

    Quarterly Trend of Revenue and Operating Profit Revenue: Increased by +31% YoY and by +13% against FY19 Q1. Large increase in C&V by +13% with positive impact of FX such as EUR Operating Profit: Product mix improved by C&V sales increase. Better than FY20 Q3, highest-ever quarterly operating profit

  17. Slide 17: Quarterly Results

    Quarterly Results (100 M JPY) FY20 Q1 Q2 Q3 Q4 FY21 Q1 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Revenue 1,313 1,520 1,653 1,652 1,717 Gross Profit 689 (52.5%) 816 (53.7%) 908 (54.9%) 854 (51.7%) 943 (54.9%) SG&A Expenses 401 (30.5%) 458 (30.2%) 447 (27.1%) 488 (29.5%) 465 (27.1%) R&D Expens

  18. Slide 18: Quarterly Results (Operating Expenses)

    Quarterly Results (Operating Expenses) (100 M JPY) FY20 Q1 Q2 Q3 Q4 FY21 Q1 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Salaries & Wages 224 232 231 240 249 Sales Promotion 20 31 35 43 30 Logistical Costs 33 36 38 37 38 Depreciation & Amortization 46 49 47 49 48 Others 78 110 97 119 99 SG&A Ex

  19. Slide 19: Operating Expenses

    Operating Expenses (100 M JPY) YoY% Change vs. FY20 Q1 FY21 Q1 YoY YoY% FY19 Q1 (FXN) FY19 Q1 Salaries & Wages 224 249 25 11% 7% 219 14% Sales Promotion 20 30 10 49% 44% 49 -38% Logistical Costs 33 38 5 16% 12% 35 11% Depreciation & Amortization 46 48 2 4% -1% 45 5% Others 78 99 22 28% 24% 97 2% SG&

  20. Slide 20: Adjusted Operating Profit: Adjustments

    Adjusted Operating Profit: Adjustments (100 M JPY) FY20 Q1 FY21 Q1 Operating Profit 181 362 Adjustment 1. Amortization of acquired intangible assets 35 39 Adjustment 2. Non-recurring profit or loss 1 1 Adjusted Operating Profit 217 402 <General examples of adjustment items> • Acquisition related cos

  21. Slide 21: CAPEX, Depreciation and R&D Expenses

    CAPEX, Depreciation and R&D Expenses (100 M JPY) FY21 FY18 FY19 FY20 FY21 Q1 Guidance CAPEX 608 895 772 167 850 Depreciation 440 477 484 126 530 Amortization of acquired intangible assets 146 157 150 38 155 Others 294 320 334 88 375 CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not inc

  22. Slide 22: Cash Flows

    Cash Flows Operating CF Investing & Financing CF (100 M JPY) +299 -439 139 110 91 Depreciation Income and taxes Working 167 360 amortization capital 103 CAPEX 112 Profit Debt 58 before tax repayment Dividends & Others redemption of bonds 2,008 1,867 Cash at Cash at the end of CAPEX = C.i.P. record b

  23. Slide 23: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (100 M JPY) USD EUR CNY Revenue 17 8 35 Adjusted Operating Profit 0 5 15 <Reference> Impact when JPY is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating Profit -1 10 65 13 23 36 ©TERUMO

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