Terumo Corporation · TSE:4543

Terumo — Q1 FY2022 Earnings Presentation

24 slides from Terumo's earnings presentation, Aug 9, 2022

  1. Slide 1: Financial Results for the First Quarter of Fiscal Year Ending March 31, 2023 (FY2022)

    Financial Results for the First Quarter of Fiscal Year Ending March 31, 2023 (FY2022) August 9, 2022 Naoki Muto Chief Accounting and Financial Officer Terumo Corporation I am the CAFO, Muto. I will now explain the first quarter results for the fiscal year ending March 2023.

  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: FY22 Q1 Results Highlights

    FY22 Q1 Results Highlights Revenue Positive year-on-year growth for all three companies, highest-ever quarterly revenue Recovery in healthcare demand including number of procedures in addition to FX (yen depreciation) contribution, resulting in double-digit growth in all regions outside of Japan Pos

  4. Slide 4: FY22 Q1 Results Highlights (continued)

    having enough main-parts stock. We also accelerate global optimization of production and procurement as the part of GS26.

  5. Slide 5: P&L Results

    P&L Results Revenue: Recovery in healthcare demand including number of procedures, return to growth trend. Positive FX (yen depreciation) impact, highest-ever quarterly revenue Operating profit: Gross profit increased, even market conditions (inflation) caused a rise in costs. Meanwhile, activities

  6. Slide 6: Operating Profit Variance Analysis

    Operating Profit Variance Analysis (100M JPY) G/P increment by sales increase: Sales increase due to demand recovery and G/P Gross Price growth, new products launched increment margin +2 Gross margin: by sales JP NHI increase SG&A FX Impact of inflation, etc. exceeded positive Price R&D -7 factors s

  7. Slide 7: Revenue by Region

    Revenue by Region (C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, PS: Pharmaceutical Solutions, TIS: Interventional Systems) Change vs. Revenue (100M JPY) Comment FY21 Q1 FY22 Q1 Sales increase led by PS, TIS and TA, maintained growth. Minor Regional ( ) FX

  8. Slide 8: C&V: Cardiac and Vascular Company results

    Number of procedures moved from recovery to growth trend in all regions but C&V: Japan, with all businesses growing sales. Segment profit returned to normal levels as business activities resumed Q1 (100M JPY) Q1 Comment YoY% ( ) FXN TIS: Growth more gradual in Japan, which had reimbursement price re

  9. Slide 9: C&V results (continued)

    sales in places including Japan and the United States. As activities resumed more than they had in the COVID-impacted previous year, expenses returned in earnest, resulting in decreased segment profit; however, this was as we anticipated.

  10. Slide 10: TMCS: Medical Care Solutions results

    Drivers were general hospital product growth in North America and TMCS: Pharmaceutical Solutions sales increase, resulting in sales growth. Segment profit decreased due to FX impact and resumption of business activities Q1 (100M JPY) Q1 Comment YoY% ( ) FXN HCS; Amid overall flat demand in Japan, ad

  11. Slide 11: TBCT: Blood and Cell Technologies results

    Automation innovation and demand recovery contributed to large growth in whole TBCT: blood market. Plasma Innovation expenses and resumption of activities, resulting in slowing of segment profit Q1 (100M JPY) Q1 Comment YoY% ( ) FXN 345 Blood As global blood transfusion demand recovered, whole Cente

  12. Slide 12: Product Pipeline and Major Topics

    Product Pipeline and Major Topics *C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, HCS: Hospital Care Solutions, LCS: Life Care Solutions Major Product Launch, Approval Status Field General Product name To FY21 FY22 FY23 and beyond Drug-eluting coronary As

  13. Slide 13: Reference

    Reference ©TERUMO CORPORATION 11 / 22

  14. Slide 14: Revenue by Segment and Region

    Revenue by Segment and Region 2022年度 第1四半期 セグメント別売上収益 Revenue by Segment for the First Quarter of FY2022 （百万円 / millions of yen) Q1 YTD Q1 YTD FY2021 FY2022 アジア他 アジア他 日本 海外 欧州 米州 中国 合計 日本 海外 欧州 米州 中国 合計 構成比 Asia and %YoY %YoY %YoY %YoY %YoY Asia and %YoY %YoY % to total JPN Overseas Europe Americas

  15. Slide 15: Quarterly Trend of Revenue and Operating Profit

    Quarterly Trend of Revenue and Operating Profit Revenue: Q1 growth 15% year-on-year, and grew 10% quarter-on-quarter, highest-ever quarterly revenue Operating profit: Q1 decreased 16% year-on-year, and grew 41% quarter-on-quarter (100M JPY) 1,973 1,788 1,798 1,717 1,729 1,653 1,652 1,520 TBCT（Revenu

  16. Slide 16: Quarterly Results

    Quarterly Results (100M JPY) FY21 Q1 Q2 Q3 Q4 FY22 Q1 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Revenue 1,717 1,729 1,788 1,798 1,973 Gross Profit 943 (54.9%) 920 (53.2%) 926 (51.8%) 905 (50.3%) 1,016 (51.5%) SG&A Expenses 465 (27.1%) 490 (28.4%) 507 (28.4%) 528 (29.4%) 566 (28.7%) R&D Expen

  17. Slide 17: Operating Expenses (Quarterly Trend)

    Operating Expenses (Quarterly Trend) (100M JPY) FY21 Q1 Q2 Q3 Q4 FY22 Q1 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Salaries & Wages 249 249 255 256 298 Sales Promotion 30 40 44 45 46 Logistics Costs 38 39 39 41 44 Depreciation & Amortization 48 50 51 54 56 Others 99 112 118 132 123 SG&A Expe

  18. Slide 18: Operating Expenses (Quarterly Results)

    Operating Expenses (Quarterly Results) (100M JPY) Change Change vs. FY21 Q1 FY22 Q1 YoY excluding FY21 Q1 FX impact Salaries & Wages 249 298 48 19% 6% Sales Promotion 30 46 16 51% 40% Logistics Costs 38 44 6 15% 6% Depreciation & Amortization 48 56 8 17% 9% Others 99 123 23 23% 13% SG&A Expenses Tot

  19. Slide 19: Adjusted Operating Profit amount

    Adjusted Operating Profit amount (100M JPY) FY21 Q1 FY22 Q1 Operating Profit 362 304 Adjustment 1. Amortization of acquired 39 46 intangible assets Adjustment 2. Non-recurring profit or loss 1 9 Adjusted Operating Profit 402 359 <General examples of adjustment items> • Acquisition related cost • Non

  20. Slide 20: CAPEX, Depreciation and R&D Expenses

    CAPEX, Depreciation and R&D Expenses (100M JPY) FY22 FY19 FY20 FY21 FY22 Q1 Guidance CAPEX 895 772 692 129 900 Depreciation 477 484 532 150 635 Amortization of acquired intangible 157 146 161 46 173 assets Others 320 338 371 104 462 CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not inc

  21. Slide 21: Cash Flows (Q1)

    Cash Flows (Q1) Operating CF Investing & Financing CF (100M JPY) +234 -190 91 166 99 130 297 Depreciation Corporate Operating 129 and taxes, etc. capital gains 72 134 amortization and losses CAPEX Profit Dividends Others before tax 2,053 2,096 Cash at the end CAPEX = C.i.P. record basis Cash at the

  22. Slide 22: FY22 FX Impact Breakdown (Flow, Stock)

    FY22 FX Impact Breakdown (Flow, Stock) FX impact vs FY21 +300M JPY Flow Annual +2.3B JPY: EUR, CNY appreciation positive impact FY21 Q1 FY22 Q1 Rate (JPY) Variation Average Rate Average Rate EUR 132 138 6 CNY 17.0 19.6 2.6 Stock Annual -2.0B JPY: FX impact from elimination of unrealized profit on in

  23. Slide 23: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (100M JPY) USD EUR CNY Revenue 20 9 38 Adjusted Operating Profit 1 5 16 <Reference> Impact when JPY depreciation 10% North Latin Europe Asia America America EUR Others CNY Others Adjusted Operating Profit 7 10 74 13 31 36 ©TERUMO CORPO

  24. Slide 24: <“TERUMO

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