Terumo Corporation · TSE:4543
Terumo — Q1 FYE March 2007 Earnings Presentation
24 slides from Terumo's earnings presentation, Jul 24, 2006
Slide 1: 1st Quarter Financial Results for FYE/Mar. 2007
TERUMO CORPORATION 1st Quarter Financial Results for FYE/ Mar.2007 July 24, 2006
Slide 2: Financial Highlights
Financial Highlights (billions of JPY) Jun. 2005 Jun.2006 Growth Net Sales 58.7 64.3 9.5% Gross Profit 31.9 (54.3%) 35.9 (55.7%) 12.6% SGA Expenses 19.8 (33.7%) 22.4 (34.8%) 13.1% Operating Income 12.0 (20.6%) 13.5 (20.9%) 11.8% Ordinary Income 12.3 (21.0%) 13.5 (20.9%) 9.1% Net Income 7.7 8.0 4.8%
Slide 3: Net Sales by Segment
Net Sales by Segment (billions of yen) 9.5％ 64.3 58.7 Cardiovascular systems +2.4 11.3 (+27.2%) 8.9 Catheter Systems 11.6 +3.3 14.9 (+28.4%) 6.8 +0.1 6.9 Home Health Care (+0.5%) 31.4 -0.2 31.2 General hospital (-0.5%) Jun 2005 Jun 2006
Slide 4: Net Sales by Region
Net Sales by Region (billions of yen) 9.5％ 64.3 Total +9.5% (+7.1%) 58.7 Asia +15.5% (+ 8.7%) +5.6 5.6 4.8 Americas +35.7% (+29.4%) 11.8 8.7 9.4 11.5 Europe +22.5% (+16.4%) Japan -1.0% Outside of Japan total 35.8 35.4 +26% (+19.7%) Jun.2005 Jun.2006 Exclude ForEx impact
Slide 5: Variance Analysis of Gross Margin
Variance Analysis of Gross Margin Improvement +1.4pｔ (54.3%⇒55.7%) Positives +1.8pｔ Improved product mix +1.7pt Economy of scale (Production increase) +0.1pt Negatives -0.4pｔ Price decline -0. 4pt
Slide 6: SGA Expenses
SGA Expenses (billions of yen) 22.4 +2.6 19.8 R&D 3.8 +10.2% +0.4 Sales & Maketing 3.4 2.2 +12.4% +0.2 2.0 1.9 +5.7% Logistics +0.1 1.8 +16.3% Personnel 7.8 6.7 +1.1 Others +0.8 6.7 +13.7% 5.9 Jun.2005 Jun.2006
Slide 7: Mar. 2007 Estimate
Mar. 2007 Estimate (billions of JPY) Sep. 2006 Mar. 2007 Net Sales 127.8 267.0 Operating Income 26.5 54.7 (20.7%) (20.5%) Ordinary Income 26.5 54.2 (20.7%) (20.3%) Net Income 16.3 33.7 Exchange rates 1US$ = 110 JPY 1Euro= 135JPY
Slide 8: About Terumo's Product Development
About Terumo's Product Development
Slide 9: Four Directions for Growth
Four Directions for Growth -DuraHeart New -Anaconda treatments -MicroVention Coils Fusion of drug Preventive and device Terumo medicine - Pre-filled syringes endeavors - Amigrand - Blood glucose monitors - Blood pressure monitors Systemization and services -Training program - Solution pack
Slide 10: Terumo's Bio Access Technology
To support growth in the four directions Terumo’s Bio Access Technology <Bio Access Technology> "People-friendly" New Metal concepts of Precision working treatments development plastic processing Micro polishing ¾No pain Drug and ¾Injection needle ¾Easy to use device ¾Syringes ¾No mistake ¾Guidewire
Slide 11: Technological Evolution (1): Bio Access & Pharmaceutical Know-how
Technological Evolution (1) Bio Access & Pharmaceutical Know-how Pharmaceutical Pharmaceutical Know-how Know-how ¾ Enhancement of ¾Enhancement of new newtreatments treatments ¾ Fusion of ¾Fusion of drug drugand anddevice device Bio Bio Access Access Technology Technology
Slide 12: Amigrand Peripheral Intravenous Nutrient Solution
Peripheral Intravenous Nutrient Solution "Amigrand" Pharmaceutical Know-how Amigrand ¾All-in-one design & stability ¾Matching with the container ¾Production technology Launched in June 2006 Bio BioAccess AccessTechnology Technology (Sales target 2006: 1 billion yen)
Slide 13: Nanocapsule Technology
Nanocapsule Technology Anticancer liposome Alliance with pharmaceutical companies Yakult YakultHonsha HonshaCo.Ltd. Co.Ltd. totoimplement implementPhase PhaseIIininUSA USA Terumo's Bio Access & Artificial red blood cell (NRC) Pharmaceutical Know-how ¾PEG coating technology ¾Liposome formulation tech
Slide 14: Drug Eluting Stent
Drug Eluting Stent Engineering Platform from Biosensors ¾New ¾Newcompound compound"BiolimusA9" "BiolimusA9" ¾Biodegradable ¾Biodegradablepolymer polymer ¾Stent ¾Stentdesign design Toward the development of next generation DES Terumo's Bio Access Technology & Pharmaceutical Know-how ¾Coating ¾Coating
Slide 15: Current Status of DES Nobori
Current Status of DES “Nobori” Europe: Europe: ¾In ¾Inthe theprocess processof ofapplication applicationto toobtain obtainthe theCE CEMark Mark → →CE CEMark Markexpected expectedwithin withinFiscal Fiscal2006 2006 ¾In ¾Inclinical clinicaltrials trialsfor forsafety safetyand andefficacy efficacydata
Slide 16: Effects of DES on vascular endothelial cells
Effects of DES on vascular endothelial cells Company A Company B Terumo DES Bare metal DES Bare metal DES Bare metal (Nobori) <Comparison Data> ¾Iliac artery of rabbit. ¾28days after implantation. Source: EuroPCR06 Presented by Dr. Virmani
Slide 17: Technological Evolution (2): Bio Access & Medical Engineering
Technological Evolution (2) Bio Access & Medical Engineering Medical Medical Engineering Engineering ¾ Enhancement of ¾Enhancement of new newtreatments treatments ¾ Fusion of ¾Fusion of drug drugand anddevice device Bio Bio Access Access Technology Technology
Slide 18: Left ventricular assist system
Left ventricular assist system Medical Medical Engineering Engineering ¾Precision control ¾Measurement of vital reaction The world's first ¾Downsizing rotary blood pump with a magnetically levitated impeller Bio Bio Access Access (Terumo Estimates) Technology Technology Enhancement of QOL
Slide 19: Current Status of DuraHeart
Current Status of “DuraHeart” Europe: Europe: ¾In ¾Inclinical clinicaltrials trialsfor foradditional additionaldata data ¾CE ¾CEMark Markexpected expectedin inthe the4th 4thquarter, quarter,FY2006 FY2006 USA: USA: ¾Application ¾Applicationplanned plannedin inFY2007 FY2007
Slide 20: Combination of Diabetes Care Business
Combination of Diabetes Care Business “Medisafe Mini” Blood Glucose Monitoring Device Bio BioAccess AccessTechnology Technology “Finetouch” Lancing Device for Blood Glucose Monitoring Medical MedicalEngineering Engineering “NanoPass” The thinnest needle in the world (Terumo Estimates)
Slide 21: Development Synergy with Olympus Imaging
Development Synergy with Olympus テルモ ｵﾘﾝﾊﾟｽが が強 強い 技術の軸 い Imaging 経皮的 ﾃﾞｨｽﾎﾟ 生物評価 ｲﾒｰｼﾞﾝｸﾞ ｴﾈﾙｷﾞｰ 経消化管 生体埋込 ｱｸｾｽ ｱｸｾｽ 材料 循環器疾患 疾病の軸 消化器疾患 （またはがん） Bio Access Medical Engineering Technology 骨疾患 （整形領域)
Slide 22: Topic: MicroVention Coils
Topic (1) MicroVention Coils coated coils Acquisition of MicroVention, Inc. ¾Full-fledged ¾Full-fledgedentry entryinto intothe thecerebral cerebral endovascular endovasculartreatment treatment ¾Strengthen ¾Strengthenpresence presenceininthe theU.S. U.S. ¾Cutting-edge ¾Cutting-edgeswelling swellingco
Slide 23: Topic: Direct Marketing & Sales in the U.S.
Topic (2) Successful Start of Direct Marketing & Sales in the U.S. ¾Focus on succeeding accounts - Glidewire - Introducer kit The global standard guidewire "Glidewire" ¾Expanding product pipeline Interventional Business in the U.S. ¾Both sales and profit to increase in FY2006
Slide 24: Directions of Terumo's Product Development
Directions of Terumo's Product Development Realizing Realizingthe theVision Vision Four FourDirections Directionsfor forGrowth Growth Synergy SynergyEffects Effects ¾New treatment Toward Bio Bioaccess access ¾Terumo’s ¾Drug & device people-friendly Technology unique technology Technology medical tre