Terumo Corporation · TSE:4543
Terumo — Q3 FY2018 Earnings Presentation
22 slides from Terumo's earnings presentation, Feb 7, 2019
Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2019 (FY2018)
Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2019 (FY2018) Terumo Corporation Managing Executive Officer Kazuaki Kitabatake February 7, 2019
Slide 2: On Course for Recovery with Normalized Shipment
On Course for Recovery with Normalized Shipment (billion yen) (億円) YoY% FY17 Q3YTD FY18 Q3YTD YoY% (FXN) Revenue 437.0 443.6 +2% +2% Gross Profit 238.6 (54.6%) 242.2 (54.6%) +1% +2% SG&A Expenses 125.2 (28.7%) 132.0 (29.8%) +5% +6% R&D Expenses 28.9 ( 6.6%) 36.0 ( 8.1%) +25% +25% Other Income and Ex
Slide 3: Achieved Highest-ever Performance on a Quarterly Basis
Achieved Highest‐ever Performance on a Quarterly Basis (billion yen) Highest past FY18 FY18 FY18 performance on a Q1 Q2 Q3 quarterly basis 158.6 Revenue 152.3 143.0 142.0 30.9 Operating 25.9 29.4 Profit 21.7 35.9 Adjusted 30.5 Operating 32.8 Profit 24.8 Average USD 109 yen 111 yen 113 yen Exchange R
Slide 4: In Line with the 2H FY18 Guidance
In Line with the 2H FY18 Guidance (billion yen) 2H FY18 FY18 Q3 Progress Guidance Results Rate Revenue 315.0 158.6 50% Operating Profit 60.0 30.9 51% Adjusted 67.0 35.9 54% Operating Profit Profit for the Year 44.0 22.0 50% Average USD 105 yen 113 yen Exchange Rate EUR 130 yen 129 yen 4/22
Slide 5: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (billion yen) FY17 Q3YTD FY18 Q3YTD 1. Amortization of acquired 10.5 11.0 intangible assets 2. Temporary gain and loss* 0.5 1.7 Adjustment 11.0 12.7 Adjusted item Adjust‐ ment *Adjusted items Milestone payment for WEB in Neurovascular (‐2.0) +2.0 Acquisition
Slide 6: Adjusted Operating Profit Variance Analysis (IFRS)
Adjusted Operating Profit Variance Analysis (IFRS) (billion yen) 0.6 Gross 4.1 margin 8.1 Price ‐1.1 6.4 JP G/P Reimburse‐ increment 11.0 ment Increase of 4.7 by sales SG&A 1.0 0.9 ‐3.0 increase Increase Others FX of R&D 12.7 97.6 91.2 86.6 78.5 FY17Q3 FY17Q3 FY18Q3 FY18Q3 Operating Adjusted Adjuste
Slide 7: Revenue by Region
Revenue by Region FY18 Q3YTD FY17 Q3YTD Revenue Year‐on‐Year Revenue Comparison 100%＝443.6BJPY billion yen YoY% Comments ( ) FXN Cardiac and Vascular Company made a negative growth due to JP reimbursement price cut and shipping delays. Both General 142.2 Hospital Company and Blood Management Japan ‐
Slide 8: Revenue by Business Segment
Revenue by Business Segment FY18 Q3YTD FY17 Q3YTD Revenue Year‐on‐Year Revenue Comparison 100%＝443.6BJPY billion yen YoY% Comments ( ) FXN Returned to the positive growth by Cardiac 241.0 having overcome the impact of JP +0% reimbursement price cut as well as 54% and (+1%) 240.0 shipping delays Vasc
Slide 9: Cardiac and Vascular: Returned to a Positive Growth in Revenue
Cardiac and Vascular : Returned to a Positive Growth in Revenue (billion yen) FY17 FY18 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN TIS: Afflicted by the impact of JP reimbursement price cut. 240.0 241.0 Saw a shift towards recovery from shipping delays ‐2.0 +0% Neurovascular: Made continuous doubl
Slide 10: General Hospital: Achieved an Increase in Revenue and Profit with Continuous Steady Growth
General : Achieved an Increase in Revenue and Profit with Hospital Continuous Steady Growth (billion yen) FY17 FY18 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN General hospital product: Saw a steady growth in infusion lines as well as needlefree closed system transfer device in Japan +0.9 120.2 125
Slide 11: Blood Management: Made Steady Growth in Line with the Guidance
Blood Management : Made Steady Growth in Line with the Guidance (billion yen) FY17 FY18 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN Blood center products: Automated Blood 76.5 76.6 Processing System mainly drove overall +0% growth in‐ and outside Japan +1.3 Revenue (+2%) Therapeutic apheresis: Made
Slide 12: Major Topics in FY18Q3
Major Topics in FY18Q3 Has received “GOOD DESIGN AWARD” for twenty three consecutive years with the award in FY2018 for five products (Oct) Corporate Adhesion barrier gel State‐changeable nutrient formula Insulin patch pump Blood Glucose Endovascular intervention “AdSpray” ”Mermed One” “MEDISAFE WI
Slide 13: New Products Pipeline in FY18
New Products Pipeline in FY18 Category Products Region Launch Category Products Region Launch Closure device for distal EU, US Q4 Access JP FY19 Next generation of oxygenator radial approach JP FY19 CV Next generation of blood EU, US, PTCA balloon US Launched Asia Launched parameter monitoring syste
Slide 14: Reference
Reference <“TERUMO 44/22
Slide 15: Quarterly Results
Quarterly Results (billion yen) FY17Q3 Q4 FY18Q1 Q2 Q3 (Oct‐Dec) (Jan‐Mar) (Apr‐Jun) (Jul‐Sep) (Oct‐Dec) Revenue 152.3 150.8 143.0 142.0 158.6 Gross Profit 83.2 80.7 79.9 74.7 87.6 (54.6%) (53.5%) (55.8%) (52.6%) (55.2%) SG&A Expenses 43.8 45.9 43.5 43.5 45.0 (28.7%) (30.4%) (30.4%) (30.5%) (28.4%)
Slide 16: FY18 Q3 Revenue and Growth by Region
FY18 Q3 Revenue and Growth by Region (billion yen) Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac and 35.4 205.6 62.3 91.9 26.7 24.7 241.0 Vascular (‐13%) (+4%) (+2%) (+5%) (+5%) (+3%) (+1%) Out of C&V Interventional 26.6 166.6 50.1 71.1 24.9 20.6 193.2
Slide 17: Operating Expenses
Operating Expenses (billion yen) FY17 FY18 YoY% YoY YoY% Q3YTD Q3YTD (FXN) Salaries & Wages 62.6 65.5 +2.9 +5% +5% Sales Promotion 12.6 13.3 +0.7 +6% +6% Logistical Costs 9.4 10.1 +0.7 +7% +8% Depreciation & 10.6 10.4 ‐0.2 ‐1% ‐1% Amortization Others 30.0 32.7 +2.7 +9% +9% SG&A Expenses Total 125.2
Slide 18: CAPEX and R&D Expenses
CAPEX and R&D Expenses Amortization (billion yen) Amortization of acquired of acquired 60.0 Expand investment in Intangibles intangible production capacity and and Goodwill assets space as well as IT 44.7 45.4 43.6 42.0 43.0 infrastructure in FY18 39.1 35.7 Depreciation Includes 31.5 32.6 14.0 a
Slide 19: Cash Flow
Cash Flow Operating CF Investment and Finance CF +57.5 ‐64.3 (billion yen) 28.4 32.6 Income Depreci‐ taxes 21.8 ation and amorti‐ Increase of zation working 35.7 75.0 capital CAPEX 19.6 Dividends Others Profit 12.0 before 3.0 167.8 tax Acquisition of Essen 161.1 Technology and others Cash at end of
Slide 20: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of one‐yen depreciation (billion yen) USD EUR CNY Revenue 1.6 0.8 2.0 Adjusted Operating 0.0 0.5 1.0 Profit <Reference> Impact when yen is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating ‐0.1 0.9 6.0 1.3 1.7
Slide 21: The Status of Convertible Bonds
The Status of Convertible Bonds Detail of the bonds (Issued in Dec, 2014) Aggregate principal Contingent Conversion price Number of shares required Maturity amount Coupon conversion trigger (yen) to be issued for conversion (billion yen) price (yen) Dec, 2019 50.0 0.0% 3,853 5,009 13.0M shares Dec
Slide 22: 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