Terumo Corporation · TSE:4543

Terumo — H1 FY2015 Earnings Presentation

19 slides from Terumo's earnings presentation, Nov 5, 2015

  1. Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2016

    Financial Results for the First Half of the Fiscal Year Ending March 31, 2016 (FY2015) Terumo Corporation S i E Senior Executive ti Offi Officer, Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake November 5 5, 2015

  2. Slide 2: Overview: Double Digit Growth Both in Sales and Profit

    Overview: Double Digit Growth Both in Sales and Profit (billion yen)) (billi 1H FY14 1H FY15 YoY% YoY% (Excl. FX) Net Sales 233.3 233 3 259.2 259 2 +11% +5% Gross Profit 122.9 (52.7%) 139.4 (53.8%) +13% +8% SG&A Expenses 76.3 (32.8%) 84.4 (32.6%) +10% +3% R&D Expenses 13.6 ( 5.8%) 15.9 ( 6.1%) +17%

  3. Slide 3: Operating Income Variance Analysis

    Operating Income Variance Analysis (billion yen) 1.1 43 4.3 Increase 23 2.3 of R&D 1.5 G/P SG&A 3.4 improve- Increase B i Business ment by due to sales Price 0.5 mix cost force Improve- reduction, erosion FX 39.1 expansion 7.6 ment etc in US Inter Inter- ventional Systems and Neuro- 33 0 33.0 G/P in

  4. Slide 4: Net Sales by Region

    Net Sales by Region FY15 1H FY14 1H Outside ( ) Excluding FX (billion yen) of Japan p 50.3 50 3 168.8 Europe 50.7 +17% (+7%) -1% (+1%) 35% 72.0 Americas 58.0 Consolidated +24% (+6%) 11% (+5%) 17.3 China 65% +62% (+38%) 10.7 Japan 90.3 29.2 +1% Asia & Ohters 24 5 24.5 +19% (+8%)  Japan: General Hosp

  5. Slide 5: Net Sales by Business Segment

    Net Sales by Business Segment FY15 1H FY14 1H (billion yen) ( ) Excluding FX Blood 125.5 Cardiac & Vascular Management 106.8 +18% (+8%) 20% Cardiac & Vascular 80.8 49% General Hospital +3% 3% ((+1%) 1%) 78.4 General 52.8 Hospital Blood Management 31% 48 1 48.1 +10% (+3%)  Achieve increase in sales

  6. Slide 6: Cardiac & Vascular: Overseas Business Drove Double-digit Growth in Sales and Profit

    Cardiac & Vascular: Overseas Business Drove Double-digit Growth in Sales and Profit (Billion yen) YoY% 1H FY14 1H FY15 YoY% ((Excl. c FX)) Sales 106.8 125.5 +18% +8% Business Profit ((%)) 21.5 ((20%)) 29.3 ((23%)) +36% +21% <Sales>  Increase in sales for overseas IS and Neurovascular businesses (ma

  7. Slide 7: General Hospital: Profitability is Recovered by Cost Improvement

    General Hospital: Profitability is Recovered by Cost Improvement (Billion yen) YoY% 1H FY14 1H FY15 YoY% ((Excl. FX)) Sales 78.4 80.8 +3% +1% Business Profit (%) 9 6 (12%) 9.6 11 7 (15%) 11.7 +22% +25% <Sales>  Japan: D&D, especially peritoneal dialysate and pain control drugs, expand the sales + 1

  8. Slide 8: Blood Management: Therapeutic Apheresis Continuously Drives Growth

    Businesses in Emerging Countries and Blood Management: Therapeutic Apheresis Continuously Drives Growth (Billion yen) YoY% 1H FY14 1H FY15 YoY% ((Excl. FX)) Sales 48.1 52.8 +10% +3% Business Profit (%) 9 3 (19%) 9.3 10 0 (19%) 10.0 +8% +16% <Sales>  Continue to grow therapeutic apheresis and cell p

  9. Slide 9: Q2 Topics

    Q2 Topics  Acquired the company’s own shares valued at 11 BJPY (dissolution of cross- shareholding) Corporate  Co-established “KENKO Commitment Companies Association” with other 14 firms which declare keeping their employees healthy  Received approval for the manufacturer and sale of HeartSheet a

  10. Slide 10: New Product Pipeline for FY2015

    New Product Pipeline for FY2015 Business Product Region Launch Business Product Region Launch Approved Disposable centrifugal pump DES in Q2 CV JP ◎◎★ JP (for PCPS) (Ultimaster) Launch in Coronary Oct 1 Blood Automated blood component ★ JP EU, Management processing system New aspiration catheter Lat

  11. Slide 11: Reference

    Reference “TERUMO 11/19

  12. Slide 12: 1H FY15 Net Sales and Growth by Region

    1H FY15 Net Sales and Growth by Region (Billion yen) Business Outside of Japan Japan p G. Total S Segmentt S Subtotal Europe Americas C China Asia Cardiac & 22.8 (-3%) 102.8(+11%) 32.5 (+3%) 44.5(+12%) 13.5(+40%) 12.3(+13%) 125.5(+8%) Vascular Out of C&V Interventional 17.2 (-5%) 81.1 (+16%) 26.1 (+

  13. Slide 13: Operating Expenses

    Operating Expenses (Billi yen)) (Billion 1H FY14 1H FY15 YoY YoY% YoY% (Excl. FX) Salaries S l i & 33.9 38.2 +4.3 +13% Wages Sales Promotion 7.6 8.1 +0.5 +7% Logistical Costs 5.3 5.5 +0.2 +3% Depreciation & 11.9 14.0 +2.1 2.1 +18% 18% A Amortization ti ti Others 17.6 18.6 +1.0 +5% SG&A Expenses 76.3

  14. Slide 14: Quarterly Results

    Quarterly Results (Billi yen)) (Billion FY14 Q2 Q3 Q4 FY15 Q1 Q2 (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Net Sales 118.4 129.9 126.3 128.7 130.5 G Gross Profit P fit 62 3 (52.6%) 62.3 67 8 (52.2%) 67.8 65 4 (51.7%) 65.4 69 0 (53.7%) 69.0 70 4 (53.9%) 70.4 SG&A Expenses 38.5 (32.5%) 40.5 (3

  15. Slide 15: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (Billion yen) FY2015 1H FY2015 Progress to Guidance Result Guidance CAPEX 36.0 14.9 41% Depreciation D i ti & Amortization * 45.0 22.0 49% R&D Expenses 35 0 35.0 15 9 15.9 45% Depreciation & Amortization: Including intangibles CAPEX: Acquisition basis <Downward revision in FY15 C

  16. Slide 16: Cash Flow

    Cash Flow Operating CF Investing and Financing CF (Billi yen)) (Billion +34.7 -23.6 21.0 22.0 Depreci Depreci- Corpo Corpo- ation & rate tax 67 6.7 Amorti- and Increase zation others in working 14.9 capital 10.8 11.0 and 40.4 others CAPEX Sale of Acqui- 6.1 invest- sition of ment own Dividend securi

  17. Slide 17: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (Billion yen) US$ EUR Net Sales 1.8 0.7 Operating Income 0.1 0.2  For US$, US$ sales expansion in U U.S. S drove higher FX sensitivity at sales sales. However However, the increase in overseas production ratio since acquisition of Caridian BCT resulted in less impact of

  18. Slide 18: 1H FY15: Impact of FX

    1H FY15: Impact of FX Average exchange rate in 1H FY14 FY15 US$ 103 yen 122 yen ((+ 19 yen)) Depreciated D i t dbby 18% EUR 139 yen 135 yen (- 4 yen) Appreciated by 3% CNY 16.6 yen 19.5 yen (+ 3 yen) Depreciated by 17% (Billion yen) Sales Operating Income Impact on goodwill amortization and US$ +13.

  19. Slide 19: 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 j ti are b basedd upon our assumptions ti using i iinformation f ti available il bl tto us

Terumo — H1 FY2015 Earnings Presentation on 6ix