Terumo Corporation · TSE:4543
Terumo — 1H FYE March 2011 Earnings Presentation
22 slides from Terumo's earnings presentation, Oct 28, 2010
Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2011
Financial Results for the First Half of the Fiscal Year Ending March 31, 2011 October 28, 2010 TERUMO Corporation
Slide 2: Financial Results
Financial Results (Unit: Billions of yen) 1H Mar. 2010 1H Mar. 2011 YoY (%) Net Sales 158.1 163.9 4% Gross Profit 83.3 (52.7%) 85.6 (52.2%) 3% SG&A Expenses 50.7 (32.1%) 52.9 (32.2%) 4% Operating Income 32.6 (20.6%) 32.7 (20.0%) 0% Ordinary Income 32.2 (20.4%) 28.2 (17.2%) -13% Net Income 20.8 (13.1
Slide 3: Net Sales (by Region)
Net Sales (by Region) (Unit: Billions of yen) Consolidated：+4% (+8%) Mar. 2011 Mar. 2010 1H 1H ( ): Constant currency Japan Overseas +2% +6% -2% 27.9 (+16%) Europe (+14%) 27.3 +8% 26.6 Americas (+16%) 28.7 87.8 89.5 70.3 74.4 China +22% 3.8 (+32%) 4.6 Asia & +15% 12.0 Others (+16%) 13.8 Ratio of Ove
Slide 4: Factors of the Overseas Favorable Performance
Factors of the Overseas Favorable Performance Interventional systems drive High growth in emerging country *% based on constant currency ■ Europe: 22% growth 3.8 China -Sales of Drug Eluting Stent 4.6 +32% “Nobori” doubled 2.7 ■ U.S.: 17% growth Latin America 3.5 +40% -The Smooth spread of TRI proce
Slide 5: Net Sales (by Business Segment)
Net Sales (by Business Segment) (Unit: Billions of yen) +3% +6% (+5%) (+14%) Mar. 2010 Mar. 2011 1H 1H ( ): Constant currency +6% (+12%) 75.1 77.4 67.5 71.9 -43% (-43%) 11.8 12.5 3.7 2.1 General Cardiac & Blood Consumer Hospital Vascular Transfusion Healthcare 5
Slide 6: Gross Profit Rate Variance Analysis
Gross Profit Rate Variance Analysis 55% Price cut Reimbursement price cut 54% 0.7 (1.0) 0.2 Volume 1.2 Foreign exchange Cost 53% 0.7 reduction 0.6 Others Shift to higher 0.3 52% profitable products 52.7% 51% 52.2% 50% Mar. 2010 Average Exchange Rates 1H Mar. 2010 1H Mar. 2011 Mar. 2011 US$: 96yen 89
Slide 7: SG&A Expenses
SG&A Expenses (Unit: Billions of yen) 1H Mar. 2010 1H Mar. 2011 YoY YoY% Salaries & wages 19.1 19.5 +0.4 +2% Sales Promotion 5.2 5.1 -0.1 -2% Logistical costs 4.4 4.7 +0.3 +7% Depreciation & Amortization 2.6 2.3 ‐0.3 ‐13% Others 11.2 11.5 +0.3 +3% General Administrative Total 42.5 (26.9%) 43.1 (26.2
Slide 8: Full Year Forecast for the FYE Mar. 2011
Full Year Forecast for the FYE Mar. 2011 Revised the foreign exchange rate forecasts of 2nd half and the full year (Unit: Billions of yen) Mar. 2011 Mar. 2011 Original Forecast Revised Forecast Change Net Sales 333.0 326.0 -7.0 Operating Income 65.2 (19.6%) 63.3 (19.4%) -1.9 Ordinary Income 65.0 (19
Slide 9: For the Future Growth
For the Future Growth Hydrophobic Swellable Coating Coating 1) Endoscopic Guidewire 2) Cerebrovascular Hydrophillic Embolization Coil Coating - Guidewires for Angiography/Treatment - Sheaths for TRI Procedures 9
Slide 10: Strategically Develop Innovative Products
1) Endoscopic Guidewires Strategically Develop Innovative Products *Thoroughly benchmark the product with highest shares *Survey the market needs beyond the framework of alliance Satisfies the 2 contradictory requirements of “thinness” and “rigidity”. Enables almost all treatments with one guidewire
Slide 11: Change the Market by Forming a Partnership
1) Endoscopic Guidewires Change the Market by Forming a Partnership zConditions before development - The most important device in endoscopic treatment - Overseas manufacturers dominated the guidewire market zPurpose of development Best in-the-world technology Overwhelming sales power in guidewires i
Slide 12: Our Innovative Technology Evaluated by the Market
1) Endoscopic Guidewires Our Innovative Technology Evaluated by the Market zOctober 2009: Began selling the products designed for the market outside Japan zApril 2010: Began selling the products designed for the market within Japan Evoked a great response after the release 10% market share in the U.
Slide 13: Cerebrovascular Embolization Coil
2) Cerebrovascular Embolization Coil To Expand the Neuro Market with Our Unique Technology z Cerebrovascular embolization coil 13
Slide 14: Trends in Cerebrovascular Treatments
2) Cerebrovascular Embolization Coil Trends in Cerebrovascular Treatments Surgical clipping Coiling treatment by a craniotomy Coil Metal clip Microcatheter Widespread Still prevalent within Japan within Europe & U.S. In the future, there will be a shift towards less invasive coiling treatment in Jap
Slide 15: Superiority of HydroCoils
2) Cerebrovascular Embolization Coil Superiority of HydroCoils z Characteristics of HydroCoil – Expands by reacting to the blood, and fills up inside of an aneurysm – One and only technology in the world z The result of HELPS* *2010: 7 countries from Europe and U.S., Randomized clinical trial of Hyd
Slide 16: Domestic Growth Strategies for Neuro Business
2) Cerebrovascular Embolization Coil Domestic Growth Strategies for Neuro Business 1. Continuous launch of new products 2. Strengthen evidence 3. Improve sales organization Triple both sales and share （Unit: Billions of yen） 3 2 1 0 FY09 FY10 FY11 FY12 FY12 To become No.1 in the neuro business withi
Slide 17: Reference
Reference 17 [OTR
Slide 18: Income for the 1st Half vs. Forecast for the 1st Half
Income for the 1st Half of the FYE Mar. 2011: To the Forecast for the 1st Half (Unit: Billions of yen) 1H 1H Impact of Original Forecast Results Changes Foreign Exchange Net Sales 164.0 163.9 -0.1 - 1.3 Operating Income 32.6 (19.9%) 32.7 (20.0%) +0.1 - 0.5 Ordinary Income 32.5 (19.8%) 28.2 (17.2%) -
Slide 19: Income for the 1st Half vs. Forecast for the Full Year
Income for the 1st Half of the FYE Mar. 2011: To the Forecast for the Full Year (Unit: Billions of yen) Full Year 1H Progress Impact of Revised Forecast Results Rates Foreign Exchange Net Sales 326.0 163.9 50% -1.3 (Lower progress rate by 0.4%) Operating Income 63.3 (19.4%) 32.7 (20.0%) 52% -0.5 (Lo
Slide 20: Gross Profit, SG&A, Operating Income Rates
Gross Profit, SG&A, Operating Income Rates Gross Profit (%) 53.7 52.7 52.6 50.7 52.2 SG&A 33.7 35.2 32.1 33.1 32.2 Operating Income 20.0 20.6 19.5 20.0 15.5 1H 2H 1H 2H 1H Mar. 2009 Mar. 2010 Mar. 2011 20
Slide 21: Changes of Quarterly Average Exchange Rates
Changes of Quarterly Average Exchange Rates ¥ 140 EUR (Mar. 2010) 120 EUR (Mar. 2011) US$ (Mar. 2010) 100 US$ (Mar. 2011) 80 Q1 Q2 Q3 Q4 21
Slide 22: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: [email protected] Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo