Terumo Corporation · TSE:4543
Terumo — FY2013 Earnings Presentation
10 slides from Terumo's earnings presentation, May 8, 2014
Slide 1: Challenges Identified in FY13 and Roadmap to FY16
Challenges Identified in FY13 and Roadmap to FY16 Terumo Corporation President and Representative Director Yutaro Shintaku 05.08.2014
Slide 2: FY13 Performance
FY13 Performance • Achieved increase in sales and profit thanks to weaker yen • Gap with the Mid-Term Plan (Profit in particular) Sales *Operating Profit USD/EUR = 95/123, BJPY USD/EUR = 95/123, BJPY ■Mid-Term Plan ■ Mid-Term Plan ■FY13 Results ■ FY13 Results -2% -9% *Excl. amortization of goodwill
Slide 3: Actions for Closing the Gap
Actions for Closing the Gap 1 Change Operations with “Company-led Management” 2 Complete TCVS Quality System Improvement 3 Reinforce Initiatives for Profitability Improvement 4 Accelerate Shift to Higher-Margin Products 5 Write off Assets of Certain Businesses 2014/5/9 ©Terumo Corporation 3/10
Slide 4: Change Operations with Company-led Management
1 Change Operations with “Company-led Management” Company-led Management (As of April 1st 2014) Shift from Matrix Management to Company-led Management in order to globally integrate and align businesses, functions and regions Operation Changes • Redefine accountability for business performance Busin
Slide 5: 3-Company, 9-Division Structure
3-Company, 9-Division Structure Matrix Management Company-led Management General Hospital Region Function Region Function General Hospital Products Division DM and Consumer Healthcare Division General Hospital Pharmaceutical and Nutrition Division D & D Division Cardiac & Vascular Cardiac & Vascular
Slide 6: Complete TCVS Quality System Improvement
2 Complete TCVS Quality System Improvement • Requested corrections to operations and verification of the new system Towards Early • Already submitted a work plan to FDA Completion • Estimated additional cost of approximately ¥3.0 Billion for re-inspection in FY14 Other • Passed FDA inspections witho
Slide 7: Reinforce Initiatives for Profitability Improvement
3 Reinforce Initiatives for Profitability Improvement Challenges Actions General Hospital Established a team dedicated Must improve profitability for profitability improvement with the core businesses Recover from margin related issues Cardiac & Vascular Set profitability target Improve margi
Slide 8: Accelerate Shift to Higher-Margin Products
4 Accelerate Shift to Higher-Margin Products • Focus on higher-margin products General Hospital • Revise regional strategy for basic commodities • Grow portion of highly profitable DM and D&D Cardiac • Coronary: expand presence with the new DES, Ultimaster & • Peripheral: develop full product lines
Slide 9: Roadmap to FY16
Roadmap to FY16 *OP Target in FY16 • Secure a foothold in FY13-14 Write off Assets of Certain Businesses 17.5% • Target OP20% by FY16 FY13 FY14 FY16 • Capital expenditure will peak out Actual Forecast Forecast Balance investment and Capital Expenditure and Depreciation depreciation (BJPY) Capit
Slide 10: 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