Terumo Corporation · TSE:4543
Terumo — H1 FY2021 Earnings Presentation
28 slides from Terumo's earnings presentation, Nov 4, 2021
Slide 1: Financial Results for the First Half of Fiscal Year Ending March 31, 2022 (FY2021)
Financial Results for the First Half of Fiscal Year Ending March 31, 2022 (FY2021) November 4, 2021 Naoki Muto Chief Accounting and Financial Officer Terumo Corporation I am the CAFO, Muto. I will now explain the 2nd-quarter results for the fiscal year ending March 2022. 1
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
Slide 3: Highlights
Highlights FY21 Q2/Q2 YTD results Revenue: Highest-ever quarterly and half-year revenue. Steady recovery in demand for Cardiac & Vascular and the revenue increased in the other two companies as well Adjusted Operating Profit: Highest-ever Q2 and half-year adjusted operating profit. Although there we
Slide 4: P&L Results
P&L Results Revenue: Highest-ever quarterly and half-year revenue. Steady recovery in demand for Cardiac & Vascular, especially for TIS. Despite the negative impact on Cardiac & Vascular from the COVID-19 resurgence mainly in US and EU in Q2, the revenue increased in all companies Adjusted Operating
Slide 5: Adjusted Operating Profit Variance Analysis (Q2 YTD)
Adjusted Operating Profit Variance Analysis (Q2 YTD) (100 M JPY) G/P increment by sales increase: The revenue increased in all companies Gross compared with FY20 Q2 YTD impacted by margin COVID-19 Price -20 Gross margin: JP NHI SG&A FX R&D Positive impact of product mix improvement -1 MDR Others fro
Slide 6: Adjusted Operating Profit Variance Analysis (Q2)
Adjusted Operating Profit Variance Analysis (Q2) (100 M JPY) G/P increment by sales increase: Despite a slowdown due to the COVID-19 resurgence, positive revenue growth in all Gross margin companies, especially in Cardiac & Vascular, compared with FY20 Q2 largely impacted by Price -8 COVID-19 SG&A F
Slide 7: Revenue by Region
Revenue by Region FY21 FY21 Q2 YTD Comments (C&V: Cardiac & Vascular, Revenue (100 M JPY) Q2 YTD YoY% GH: General Hospital, TBCT: Blood & Cell Technologies) Regional Q2 YTD Q2 () FXN Japan: Continuous double-digit growth in GH driven by Alliance and General hospital products. Continuous growth in C&
Slide 8: Revenue by Region: China and Asia commentary
In China, results calmed following a temporary large purchase of TIS products by distributors in the 1st quarter, but high growth continued there. In Neurovascular, there was a reduction due to distributor order timing the previous year that made this yearʼs year-on-year increase larger, but even wh
Slide 9: Cardiac & Vascular Company results
Significant revenue increase in all divisions with substantial recovery of procedures, especially in US and EU. C&V: Compared with FY21 Q1, revenue decline due to the COVID-19 resurgence and expenses utilized as planned (100 M JPY) Q2 YTD Q2 YTD Q2 Comments Rev. YoY () FXN TIS: Remaining COVID-19 im
Slide 10: Cardiac & Vascular adjusted operating profit commentary
resource shortages at factories in North America were all negative factors, which were balanced by product mix improvement through increased revenue. Adjusted operating profit on revenue was 26%. 8
Slide 11: General Hospital Company results
Increase driven by pumps and daily use General hospital products. GH: Increase in both revenue and profit compared with FY21 Q1, driven by General hospital products (100 M JPY) Q2 YTD Q2 YTD Q2 Comments Rev. YoY () FXN 920 General hospital products: Double-digit growth driven by a recovery of 828 81
Slide 12: General Hospital adjusted operating profit commentary
on revenue was 15% 9
Slide 13: Blood and Cell Technologies Company results
Continued increase in revenue and profit with product mix improvement and expense control. TBCT: Revenue increase in Blood center solutions compared with FY21 Q1 (100 M JPY) Q2 YTD Q2 YTD Q2 Comments Rev. YoY () FXN Blood center solutions: Double-digit growth in whole blood collection 582 products w
Slide 14: Upward Revision of Dividend Forecast
Upward Revision of Dividend Forecast Stably increasing, and aim for the target dividend payout ratio of 30% over the mid to long term FY21 annual dividend: 32.0 JPY (increased by 2.0 JPY from the original forecast) Original Forecast Revised Forecast 30.0 JPY 32.0 JPY Dividend/share Interim 15.0 Inte
Slide 15: Major Topics
Major Topics • Resolved the selection of the new “Prime Market” segment on the Tokyo Corporate Stock Exchange, Inc. • Has received “GOOD DESIGN AWARD” for twenty-six consecutive years High condensed liquid nutrition “PG series” “F2 series” and four other products won the award • Released final resul
Slide 16: Reference
Reference ©TERUMO CORPORATION 13 / 24 13
Slide 17: 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
Slide 18: Revenue by Segment and Region
Revenue by Segment and Region ©TERUMO CORPORATION 15 / 24 15
Slide 19: Quarterly Trend of Revenue and Operating Profit
Quarterly Trend of Revenue and Operating Profit Revenue: Increase by +14% YoY and by +12% against FY19 Q2. Large increase in C&V by +13% against FY19 Q2 with positive impact of FX such as EUR Operating Profit: In addition to the negative GP impact of VBP in China and lowered production level, declin
Slide 20: P&L (Quarterly Results)
P&L (Quarterly Results) (100 M JPY) FY20 Q2 Q3 Q4 FY21 Q1 Q2 (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Revenue 1,520 1,653 1,652 1,717 1,729 Gross Profit 816 (53.7%) 908 (54.9%) 854 (51.7%) 943 (54.9%) 920 (53.2%) SG&A Expenses 458 (30.2%) 447 (27.1%) 488 (29.5%) 465 (27.1%) 490 (28.4%) R&D
Slide 21: Operating Expenses (Quarterly Results)
Operating Expenses (Quarterly Results) (100 M JPY) FY20 Q2 Q3 Q4 FY21 Q1 Q2 (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Salaries & Wages 232 231 240 249 249 Sales Promotion 31 35 43 30 40 Logistical Costs 36 38 37 38 39 Depreciation & Amortization 49 47 49 48 50 Others 110 97 119 99 112 SG&A E
Slide 22: Operating Expenses (YTD and Quarterly Results)
Operating Expenses (YTD and Quarterly Results) (100 M JPY) FY20 Q2 FY21 Q2 YoY% YoY YoY% FY20 Q2 FY21 Q2 YoY YoY% YTD YTD (FXN) Salaries & Wages 456 498 42 9% 5% 232 249 17 7% Sales Promotion 51 70 19 38% 34% 31 40 9 31% Logistical Costs 69 77 9 12% 9% 36 39 3 9% Depreciation & Amortization 95 98 3
Slide 23: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (100 M JPY) FY20 Q2 YTD FY21 Q2 YTD FY20 Q2 FY21 Q2 Operating Profit 418 659 238 296 Adjustment 1. Amortization of acquired intangible assets 72 79 37 40 Adjustment 2. Non-recurring profit or loss 23 4 21 3 Adjusted Operating Profit 513 741 296 339 <General exa
Slide 24: CAPEX, Depreciation and R&D Expenses
CAPEX, Depreciation and R&D Expenses (100 M JPY) FY21 Q2 FY21 FY18 FY19 FY20 YTD Guidance CAPEX 608 895 772 324 850 Depreciation 440 477 484 256 530 Amortization of acquired intangible assets 146 157 150 71 155 Others 294 320 334 185 375 CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is no
Slide 25: Cash Flows (Q2 YTD)
Cash Flows (Q2 YTD) (100 M JPY) Operating CF Investing & Financing CF +667 -646 168 284 Income 101 Depreciation taxes Working and capital 324 amortization 653 CAPEX 105 Debt 113 repayment Dividends 103 Profit & Others before tax redemption of bonds 2,029 2,008 Cash at CAPEX = C.i.P. record basis Cas
Slide 26: Cash Flows (Q2)
Cash Flows (Q2) (100 M JPY) Operating CF Investing & Financing CF +368 -206 58 11 144 Income taxes Working capital 157 Depreciation and 3 amortization CAPEX 47 293 Debt repayment Others Profit before tax 2,029 1,867 Cash at CAPEX = C.i.P. record basis Cash at the end of Cash at the end of each perio
Slide 27: 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
Slide 28: ~“TERUMO
~“TERUMO Sii-Ahead TOO® 25