Terumo Corporation · TSE:4543

Terumo — 1H FY3/2013 Earnings Presentation

22 slides from Terumo's earnings presentation, Oct 30, 2012

  1. Slide 1: Financial Results for the First Half of the Fiscal Year Ending March 31, 2013

    Financial Results for the First Half of the Fiscal Year Ending March 31, 2013 Terumo Corporation October 30, 2012

  2. Slide 2: Consolidated 1H Results

    Consolidated 1H Results (billions of yen) 1H 1H YoY% Mar. 2012 Mar. 2013 Net Sales 190.7 191.8 + 1% Gross Profit 103.1 (54.1%) 100.5 (52.4%) - 3% SG&A Expenses 57.1 (29.9%) 59.9 (31.2%) + 5% R&D Expenses 11.4 ( 6.0%) 12.4 (6.5%) +10% Operating Income 34.6 (18.2%) 28.2 (14.7%) -19% (Excl. Amortizatio

  3. Slide 3: Net Sales (by Region)

    Net Sales (by Region) (billions of yen) Consolidated: +1%(+3%) 1H 1H Mar. 2012 Mar. 2013 ( )Excluding Foreign Exchange Japan Outside Japan -6% 36.5 -1% +2% Europe (+5%) 34.4 (+7%) Americas +6% 39.0 (+7%) 41.4 92.4 91.6 98.3100.2 +22% 6.6 China (+22%) 8.0 Asia +1% 16.2 & Others (+6%) 16.4 2012/10/30

  4. Slide 4: Net Sales (by Business Segment)

    Net Sales (by Business Segment) (billions of yen) +1% +1% 1H 1H Mar. 2012 Mar. 2013 (+2%) (+5%) ( )Excluding Foreign Exchange -3% (+2%) 76.2 77.2 79.2 80.4 35.3 34.3 General Cardiac & Blood Hospital Vascular Management 2012/10/30 ©Terumo Corporation 4/20

  5. Slide 5: 1H Net Sales (by Business Segment, JP/Outside JP)

    1H Net Sales (by Business Segment, JP/Outside JP) 1H (Apr – Sep) (billions of yen) Outside Business Asia & Japan of Japan Europe Americas China G･Total Segment Total Others General 62.7 14.4 4.8 3.5 0.6 5.5 77.2 Hospital ( 3%) ( 1%) (-0%) ( 2%) (32%) (-1%) ( 2%) Cardiac & 22.8 57.5 20.7 23.7 6.3 6.9

  6. Slide 6: Gross Profit Variance Analysis

    Gross Profit Variance Analysis (%) 0.0 0.6 0.6 Production 0.2 Volume Shift to High Foreign 1.0 Profit Products Exchange Cost Reduction Prices 0.9 54.1% Cost for Quality System Improvement 52.4% 1H 1H Mar. 2012 Mar. 2013 2012/10/30 ©Terumo Corporation 6/20

  7. Slide 7: SG&A Expenses

    SG&A Expenses (billions of yen) 1H Mar. 2012 1H Mar. 2013 YoY YoY% Salaries & Wages 24.2 25.4 +1.2 +5% Sales Promotion 5.4 5.7 +0.3 +5% Logistical Costs 5.1 5.0 -0.1 -1% Depreciation & Amortization 8.6 8.6 - 0 -0% Others 13.8 15.2 +1.4 +9% General Administrative Total 57.1 (29.9%) 59.9 (31.2%) +2.8

  8. Slide 8: Operating Income Variance Analysis

    Operating Income Variance Analysis (billions of yen) 4.3 7.2 Revision of JP Reimbursement 4.0 Increase in Price Gross Profit Foreign 1.5 Exchange Cost for 2.8 Quality System Increase 1.0 34.6 Improvement in General Increase Admin. in R&D Expenses Expenses 28.2 1H 1H Mar. 2012 Mar. 2013 2012/10/30 ©T

  9. Slide 9: 1H Forecast vs. 1H Results

    1H Forecast vs. 1H Results (billions of yen) 1H 1H Forecast 1H Results Variance Progress Net Sales 195.0 191.8 -3.2 98% Operating Income 28.5 (14.6%) 28.2 (14.7%) -0.3 99% Ordinary Income 27.5 (14.1%) 24.2 (12.6%) -3.3 88% Net Income 16.0 ( 8.2%) 14.5 ( 7.6%) -1.5 91% Average Exchange Rate Forecast

  10. Slide 10: Consolidated Results: Q1 to Q2

    Consolidated Results: Q1 to Q2 (billions of yen) Q1 Results Q2 Results Variance Variance % Net Sales 95.9 96.0 +0.1 +0% Gross Profit 51.7 (53.9%) 48.8 (50.9%) -2.9 -6% Operating Income 15.5 (16.1%) 12.7 (13.3%) -2.8 -18% Average Exchange Rate Q1 Q2 US$ 80 yen 79 yen EUR 103 yen 98 yen Factors for lo

  11. Slide 11: Q2: Strong in Overseas C&V, Recovery in Blood Management

    Q2: Strong in Overseas C&V, Recovery in Blood Management (billions of yen) Q2(Jul – Sep) „The challenges are General Hosp and C&V in Japan Outside Business Asia & Japan of Japan Europe Americas China G･Total Segment Total Others General 31.5 7.5 2.4 1.9 0.3 2.9 39.0 Hospital ( 1%) ( 4%) ( 8%) ( 2%)

  12. Slide 12: Key Initiatives in 2nd Half

    Key Initiatives in 2nd Half „ Regain Nobori market share in JP by re-emphasizing its strengths ¾ Advantages in particular lesions, Long-term safety & efficacy „ Strengthen General Hospital business in JP ¾ Broaden the product lineup in infusion system z FULCALIQ®(Total parenteral nutrition in safety

  13. Slide 13: Nobori Long-term Safety Presented at TCT

    Nobori Long-term Safety Presented at TCT „ Biodegradable polymer DES (same drug & polymer as Nobori) was compared w/ durable polymer DES „ “Nobori is significantly lower in stent thrombosis in long-term” LEADERS 5 years: Stent Thromosis Rate Sirolimus Sirolimus Eluting ElutingStent Stent (Durable (D

  14. Slide 14: Nobori Long-term Efficacy (JP Study) Presented at TCT

    Nobori Long-term Efficacy(JP Study)Presented at TCT „ Revascularization rate of Nobori tended to be lower than Cypher in the long-term „ Differences in revascularization between the two at 2yrs and 3yrs increased 3yrs TLR Free Rate (NOBORI-J) Revascularization: 1.7% Revascularization: 4.8% <Referenc

  15. Slide 15: Reference

    Reference 2012/10/30 ©Terumo Corporation 15/20

  16. Slide 16: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (billions of yen) Mar. 2013 1H Mar. 2013 YoY Forecast Result CAPEX* 38.0 15.1 (40%) +2.8 Depreciation & Amortization* 32.5 15.5 (48%) +1.3 R&D Expenses 27.0 12.4 (46%) +1.0 %: Progress to forecast * Including intangibles CAPEX: acquisition basis 2012/10/30 ©Terumo Corporation 16/

  17. Slide 17: 1H Cash Flow

    1H Cash Flow (billions of yen) „ Cash was used in good balance among capital investment for sustainable growth, repayment of debt, and dividend. in out Others Repayment 3.8 of debt 14.4 Depreciation & Amortization 15.5 Capital investment 15.2 Net Income 14.5 Dividend* 4.2 Total 33.8 Total 33.8 *Targ

  18. Slide 18: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (billions of yen) US$ EUR Net Sales 1.7 0.7 Operating Income 0.3 0.4 2012/10/30 ©Terumo Corporation 18/20

  19. Slide 19: Gross Profit, SG&A Expenses, Operating Income

    Gross Profit, SG&A Expenses, Operating Income Gross Profit (%) 55.0 51.7 51.8 53.9 50.9 SG&A Expenses (%) 36.9 36.2 38.3 37.8 37.6 Operating Income (%) 18.1 15.5 16.1 13.5 13.3 Q2 Q3 Q4 Q1 Q2 Mar. 2012 Mar. 2013 (%): Against net sales 2012/10/30 ©Terumo Corporation 19/20

  20. Slide 20: Changes in Gross Profit (%)

    Changes in Gross Profit (%) 57.0 FY09 FY10 FY11 FY12 (%) 56.0 55.0 54.0 53.0 52.0 51.0 50.0 49.0 Ｑ１ Ｑ２ Ｑ３ Ｑ４ FY09 53.6 粗利益率の動き 51.8 52.9 52.2 FY10 52.1 52.3 51.7 52.0 FY11 53.2 55.0 51.7 51.8 FY12 53.9 50.9 (Quarterly: 3 months) 2012/10/30 ©Terumo Corporation 20/20

  21. Slide 21: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates 130 ＥＵＲ(Mar. 2012) 117 110 ＥＵＲ(Mar. 2013) 110 103 104 104 98 90 ＵＳ＄(Mar. 2012) 82 78 77 79 80 79 70 ＵＳ＄(Mar. 2013) Q1 Q2 Q3 Q4 (Quarterly: 3 months) 2012/10/30 ©Terumo Corporation 21/20

  22. 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

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