Terumo Corporation · TSE:4543
Terumo — FY2015 Earnings Presentation
29 slides from Terumo's earnings presentation, May 10, 2016
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2016 and Guidance
Financial Results for the Fiscal Year Ended March 31, 2016 (FY2015) and Guidance for the Fiscal Year Ending March 31, 2017(FY2016) Terumo Corporation Managing Executive Officer, Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake May 10, 2016
Slide 2: Overview: Achieved Significant Growth in Both Sales and Profit
Overview: Achieved Significant Growth in Both Sales and Profit (billion yen) FY2014 FY2015 YoY% YoY% (Excl. FX) Net Sales 489.5 525.0 +7% +5 % Gross Profit 256.1 (52.3%) 284.9 (54.3%) +11% +10 % SG&A Expenses 159.2 (32.5%) 170.1 (32.4%) +7% +4% R&D Expenses 29.4 ( 6.0%) 33.1 ( 6.3%) +13% +9% Operati
Slide 3: Extraordinary Gains & Losses, Income Taxes
Extraordinary Gains & Losses, Income Taxes (billion yen) FY2014 FY2015 FX FY14 +6.6 Non-operating Income and loss 3.3 -8.6 FY15 -7.5 Ordinary Income 70.7 73.1 YoY%: +3% FY14 Cost for EU Extraordinary restructuring -5.6 -6.7 +3.8 Gains & Losses FY15 Gain through the sales of land (Q2) +4.4 Income bef
Slide 4: Operating Income Variance Analysis
Operating Income Variance Analysis 3.1 7.2 (billion yen) Business mix Price 12.0 improve- 6.1 erosion ment SG&A 2.5 G/P increase Increase 2.9 improve- due to sales of R&D FX 81.7 ment by force 17.9 cost expansion reduction, in US inter- etc ventional Systems 67.5 G/P and neuro- increment vascular by
Slide 5: Operating Income Variance Analysis
Operating Income Variance Analysis Cardiac and General Blood Vascular Hospital Management (billion yen) 11.4 1.9 0.1 0.3 1.9 0.5 2.5 Increase in G/P Increase G/P Increase in Others investment in operating Incre- Increase in 27.4 Incre- expenses operating amortization 81.7 for sales ment ment expense
Slide 6: Impact of FX onto Operating Income
Impact of FX onto Operating Income USD: Impact remained neutral due to increase in dollar-based production and expenses EUR: Sensitivity escalated due to the downscaled production and increase in sales Currencies in emerging countries: Greater FX impact due to sales increase and those depreciatio
Slide 7: Net Sales by Region
Net Sales by Region FY15 FY14 Net Sales Year-on-Year Sales Comparison 100% = 525.0 billion yen billion yen YoY% Comments ( ) Excl. FX In addition to Cardiac and Vascular, 36% Japan 187.2 2% General Hospital (Infusion Systems, PD 183.1 and DM) drove increase in overall sales Downsizing of low profit
Slide 8: Net Sales by Business Segment
Net Sales by Business Segment FY15 FY14 Net Sales Year-on-Year Sales Comparison 100%=525.0 billion yen billion yen YoY% Comments ( ) Excl. FX Besides double digit growth in overseas interventional systems and neurovascular 49% Cardiac and 258.6 14% business, global “Ultimaster” sales also Vascular 2
Slide 9: Cardiac and Vascular: Overseas TIS and Neurovascular Drove the Company
Cardiac and :Overseas TIS and Neurovascular Businesses Drove the Overall Company, Vascular Achieving Double Digit Growth Both in Sales and Profit (billion yen) FY2014 FY2015 YoY% Major Topics Impact ( ) Excl. FX 258.6 Continuous double digit growth in +28.5 226.9 overseas TIS and neurovascular busin
Slide 10: General Hospital: Flat Sales, Improved Profitability
General :Despite Flat in Sales Due to Downsizing of Low Profit Businesses Hospital in EU and Americas, Improve Profitability through Cost Reduction (billion yen) FY2014 FY2015 YoY% Major Topics Impact ( ) Excl. FX Japan: Increase of sales in infusion system +1.9 161.5 161.4 products (incl. Pumps), P
Slide 11: Blood Management: Continuous Double Digit Growth
Blood : Continuous Double Digit Growth for Business Management in Emerging Countries and Therapeutic Apheresis (billion yen) FY2014 FY2015 YoY% Major Topics Impact ( ) Excl. FX A double digit growth in overseas therapeutic apheresis and cell +3.6 processing businesses 101.1 105.0 4% (2%) A double di
Slide 12: FY2015 Major Topics
FY2015 Major Topics Established an Audit/Supervisory Committee (Jun) Share buyback valued at 61 BJPY in total (Aug, Feb) Selected as “The Health & Productivity Stock Selection” (Jan) Corporate and “Nadeshiko Brand” (Mar) Hollow fiber typed oxygenator won “Okochi Memorial Prize” (Mar) Peripher
Slide 13: New Products Launched in FY2015
New Products Launched in FY2015 Business Product Region Launch Business Product Region Launch DES ◎◎ Launched in Disposable centrifugal Coronary JP CV pump JP Q4 (Ultimaster) ★ Oct 1 (for PCPS) Stent (Misago) ★ US Q1 Automated blood Blood component processing ★ JP FY16 PTA balloon Management system
Slide 14: FY2016 Guidance
FY2016 Guidance (billion yen) FY2016 FY2015 FY2016 Impact YoY% FX Neutral YoY% Result Guidance of FX Guidance Net Sales 525.0 517.0 -2% -31.0 548.0 +4% Operating Income 81.7 75 83.5 -8% -8.5 +2% (%) (15.6%) (14.5%) (15.2%) Ordinary Income 73.1 71.0 -3% -10.3 81.3 +11% Net Income 50.7 52.5 +4% Averag
Slide 15: FY2016 Guidance (excl. FX)
FY2016 Guidance (excl. FX) Sales Business Profit Comments billion yen YoY% billion yen YoY% Continuous growth in FY16 278.0 25% 68.5 overseas TIS and Cardiac and +8% +8% neurovascular Vascular FY15 258.6 25% 63.4 businesses 162.0 14% 22.6 Continuous improvement General +0% +0% Hospital 161.4 14% 22.
Slide 16: FY2016 Annual Guidance
FY2016 Annual Guidance 2.3 Product 7.4 (billion yen) mix 8.4 improve- Price ment 5.2 erosion G/P JP improve- reimburse- ment by ment 10.7 cost 18.4 reduction SG&A increase 4.0 due to R&D FX sales force expenses 83.5 81.7 G/P expansion 8.5 increment by sales in US TIS increase and neuro- FX vascular
Slide 17: The Impact of FX on FY2016
The Impact of FX on FY2016 (billion yen) Fluctuation of FX (yen) Impact on Impact on Currency FY15Q1～FY16 (Guidance) Operating Net Sales FY2015Q1 Q2 Q3 Q4 Income 121 122 121 USD FY16 Guidance -13.6 +1.9 115 110 136 134 133 EUR 127 FY16 Guidance 125 -3.9 -2.3 19.6 19.5 CNY 19.0 FY2016 Guidance -3.3 -
Slide 18: Measure against FX Fluctuation: Improve Profitability through Transforming Business Portfolio
Measure against :Improve Profitability through Transforming FX Fluctuation Business Portfolio Shift to highly profitable business e.g. ) Business Portfolio in EU (Sales by business segments) (billion yen) FY2014 FY2016 Change in Sales Cardiac and Vascular 62% 66% +2.9 General Hospital 12% 8% -4.0
Slide 19: ROE
ROE Reach up to 10.0% Net Income 24.2 47.0 34.1 38.5 50.7 52.5 (billion yen) 14% 14% 700 7,000 Share Buyback 11.9% * valued at 6,000 600 61 billion yen 10.0% 10% 10% ROE 9.3% 5,000 500 4,000 400 7.2% 3,000 300 6% 7.0% 7.3% 200 2,000 Equity 1,000 100 2% 2% 0 FY11 FY 2011 FY12 FY2012 FY13 FY2013 FY14
Slide 20: Dividends and EPS
Dividends and EPS yen 160.0 160.0 50.0% 50.0% 145 140.0 140.0 EPS 135 124 124 Dividend 40.0% 40.0% 120.0 120.0 Payout Ratio 101 100.0 100.0 90 30.0% 30.0% 80.0 80.0 64 60.0 60.0 20.0% 20.0% Dividend per 41.0 40.0 40.0 39.0 Share 30.5 29.0 10.0% 10.0% 19.5 22.0 20.0 20.0 0.0 0.0 0.0% 0.0% FY2011 FY11
Slide 21: New Products Pipeline in FY2016
New Products Pipeline in FY2016 Category Products Region Category Products Region DES(Ultimaster) ◎★ France Disposable Centrifugal Pump CV Asia (for PCPS) Coronary DES (Ultimaster) ◎★ JP Intradermal Injection Device ★ JP 4.0mm (Diameter) D&D Imaging IVUS ◎★ JP Adhesion barrier JP ★ PTA Balloon Blood
Slide 22: Reference
Reference TERUMO 22/29
Slide 23: FY15 Net Sales and Growth by Region
FY15 Net Sales and Growth by Region (billion yen) Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac and 51.6 (+7%) 207.0 (+11%) 66.7 (+5%) 89.4 (+11%) 26.4 (+30%) 24.6 (+13%) 258.6 (+10%) Vascular Out of C&V Interventional 39.6 (+7%) 163.3 (+14%) 53.3 (+6%)
Slide 24: Operating Expenses
Operating Expenses (billion yen) FY2014 FY2015 YoY YoY% YoY% (Excl. FX) Salaries & Wages 70.5 76.0 +5.5 + 8% +5% Sales Promotion 16.0 17.2 +1.2 + 8% +6% Logistical Costs 11.0 11.0 -0.0 - 0% -1% Depreciation & 25.1 27.5 +2.4 +10% +3% Amortization Others 36.6 38.4 +1.8 + 5% +3% SG&A Expenses Total 159
Slide 25: Quarterly Results
Quarterly Results (billion yen) FY14 Q4 FY15 Q1 Q2 Q3 Q4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Net Sales 126.3 128.7 130.5 136.8 129.0 Gross Profit 65.4 (51.7%) 69.0 (53.7%) 70.4 (53.9%) 75.3 (55.0%) 70.3 (54.4%) SG&A Expenses 42.4 (33.5%) 41.7 (32.5%) 42.7 (32.7%) 42.9 (31.3%) 42.8 (33.
Slide 26: CAPEX and R&D Expenses
CAPEX and R&D Expenses (billion Yen) Amortization of Intangibles 46.6 44.7 44.0 and Goodwill 39.9 41.4 40.7 CAPEX was peaked 39.0 out on FY2013. 32.2 32.6 31.5 16.3 17.7 20.2 18.5 CAPEX is projected 14.0 to be at the same CAPEX level as amortization 18.6 23.6 23.0 24.5 25.5 CAPEX of 4 billion yen
Slide 27: Cash Flow
Cash Flow Operating CF Investing and Financing CF +80.3 - 60.3 36.5 10.8 44.7 Corpo- rate Tax 4.8 Sale of (billion yen) Depreci- Increase in Investment ation & Working Securities 61.0 Amorti- Capital zation 76.9 Share Buyback 31.5 13.2 34.6 Income CAPEX before Dividends 149.7 Others 129.7* Tax * Cas
Slide 28: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity (billion yen) USD EUR Excl. Amortization Incl. Amortization Net Sales 1.4 1.4 0.5 Operating Income 0.0 -0.2 0.3 28/29
Slide 29: 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