Terumo Corporation · TSE:4543

Terumo — H1 FY2012 Earnings Presentation

26 slides from Terumo's earnings presentation, Oct 27, 2011

  1. Slide 1: Refinancing Bridge Loan Related to CaridianBCT Acquisition & Cancellation of Treasury Stock

    Refinancing Bridge Loan Related to CaridianBCT Acquisition & Cancellation of Treasury Stock Terumo Corporation October 27, 27 2011

  2. Slide 2: Refinancing bridge loan and cancellation of treasury stock

    Refinancing bridge loan related to CaridianBCT acquisition Cancellation Ca a of treasury a y stock 2011/10/27 ©Terumo Corporation 2/26

  3. Slide 3: Refinancing Bridge Loan Related to CaridianBCT Acquisition

    Refinancing Bridge Loan Related to CaridianBCT Acquisition  Environment recognition Economic and financial issues in EU Downturn risk of U.S. and China economy Refinancing g the bridge g loan with cash on hand & debt 2011/10/27 ©Terumo Corporation 3/26

  4. Slide 4: Refinancing Bridge Loan of Total 220 Billion Yen

    Refinancing Bridge Loan of Total 220 Billion Yen  Cash on hand: 30 billion yen  Debt: 190 billion yen  Targeted financial condition in 3 yrs 1H Mar. 2014 Mar 2012 Mar. Net D/E Ratio 0.4 0.2 Equity Ratio 48% 58% 2011/10/27 ©Terumo Corporation 4/26

  5. Slide 5: Cancellation of Treasury Stock

    Cancellation of Treasury Stock In Board of Directors on Oct 27, 2011, Terumo resolved a cancellation of all of its treasury stock, 20,996 K shares.  Initial plan of holding treasury stock  To utilize it in connection with strategic investments, in responding to b business si ss environment io m t

  6. Slide 6: Financial Results for the First Half of the Fiscal Year Ending March 31, 2012

    Financial Results for the First Half of the Fiscal Year Ending March 31 31, 2012

  7. Slide 7: Consolidated 1H Results

    Consolidated 1H Results (billion of yen) 1H 1H YoY% Mar. 2011 Mar. 2012* Net Sales 163.9 190.7 +16% Gross Profit 85.6 (52.2%) 103.1 (54.1%) +21% SG&A Expenses 52 9 (32.2%) 52.9 (32 2%) 68 5 (35.9%) 68.5 (35 9%) +30% Operating Income 32.7 (20.0%) 34.6 (18.2%) +6% (Excl Amortization of goodwill) (Excl

  8. Slide 8: 1H Results of BCT Stand Alone

    1H Results of BCT Stand Alone Sustained strong performance (billion yen) 1H Y Y% YoY% Mar. 2012 (Constant Currency) Net Sales 22.8 +13% Gross Profit 14 2(62.2%) 14.2 (62 2%) +12% SG&A Expenses 8.4 (36.6%) +15% Operating Income 5.8 (25.6%) + 8% Ordinary Income 5 6 (24.6%) 5.6 Net Income 3.3 (14.5%) E

  9. Slide 9: 1H Results of Existing Business

    Excluding BCT & Harvest 1H Results of Existing Business Steady increase both in sales and income (billion yyen) ( ) 1H 1H Constant YoY% Mar. 2011 Mar. 2012 Currency Net Sales 163.9 167.2 +2% +5% Gross Profit 85 6 (52.2%) 85.6 (52 2%) 88 4 (52.9%) 88.4 (52 9%) +3% +8% SG&A Expenses 52.9 (32.2%) 53.8

  10. Slide 10: Net Sales (by Region)

    Excluding BCT & Harvest Net Sales (by Region) (billion of yen) Consolidated: +2%(+5%) 1H 1H M 2011 Mar. Mar. M 2012 ( ) Constant Currency Japan Outside of Japan +2% +2% +6% 27 3 27.3 (+8%) Europe (+7%) 28.9 -8% 28.7 Americas (+2%) 26.4 89.5 91.7 74.2 75.5 +25% 4.6 China (+39%) 5.7 +7% 13.6 Asia & ot

  11. Slide 11: Net Sales (by Business Segment)

    Excluding BCT & Harvest Net Sales (by Business Segment) (billion of yen) -4% +9% 1H 1H (-3%) (+14%) Mar. 2011 Mar. 2012 +0% ( ) Constant Currency ( (+4%) ) 77.3 78.5 74.0 71.8 +5% 12 5 12.5 12 5 12.5 (+6%) 2.1 2.2 General Cardiac & Blood Consumer Hospital Vascular Management Healthcare 2011/10/27 ©T

  12. Slide 12: Gross Profit Variance Analysis

    Excluding BCT & Harvest Gross Profit Variance Analysis 0.3 0.6 0.3 Others Foreign 0.3 04 0.4 Shift to exchange highly Prices Cost profitable 0.6 down products p Volume 52.9% 52 2% 52.2% 1H Average 1H 1H 1H Mar. 2011 Exchange Rate Mar. 2011 Mar. 2012 Mar. 2012 US$: 89 yen 80 yen EUR: 114 yen 114 yen

  13. Slide 13: SG&A Expenses

    Excluding BCT & Harvest SG&A Expenses (billion of yen) 1H 1H YoY YoY% Mar 2011 Mar. Mar 2012 Mar. Salaries & Wages 19.5 19.5 +0.0 +0% Sales Promotion 51 5.1 52 5.2 +0 1 +0.1 +1% Logistical Costs 4.7 5.1 +0.4 +8% Depreciation D i ti & 2.3 2.3 +0.0 +0% Amortization Others 11.5 11.9 +0.4 +3% General Ad

  14. Slide 14: Impact of the Earthquakes

    Impact of the Earthquakes  Assumed some business loss due to short supply of product, d l off new product delay d td development, l t and d market k t shrinkage hi k (billion of yen) Impact Modified 1H 2H Mar 2012 Mar. Projected Projection Results Forecast May 11 Jul 28 Net Sales -10 -7 -4 -3 Estim

  15. Slide 15: Strong Performance: Nobori

    Strong Performance: Nobori™ On track toward 20 billion yen of global sales (billion of yen) Global Cumulative Sales 20 billion yen 20 Mar. 2012 10 9 billion yen Launched In Japan Japan Outside of Japan April Sep Mar YTD YTD (Forecast) 2011/10/27 ©Terumo Corporation 15/26

  16. Slide 16: Improving Quality System to Reinforce CV Business

    Improving Quality System to Reinforce CV Business Observations about quality system process at Terumo CVS’s Ann Arbor plant were raised by FDA Mar. 2011, Terumo CVS agreed to a consent decree w/ FDA regarding quality system improvements Under the agreement, a work plan to resolve the observations

  17. Slide 17: Impacts on Forecast for Mar. 2012

    Impacts on Forecast for Mar. 2012 (Against original forecast for Mar. 2012)  Net Sales: -7.0 billion yen  Newly N l assumed d exchange h rate t ffor 2H -7.0 7 0 billi billion yen (US$ 80 yen -> 75 yen, EUR 113 yen -> 103 yen)  Operating income: -4.4 billion yen  Newly assumed exchange rate for 2

  18. Slide 18: Forecast for Mar. 2012

    Forecast for Mar. 2012 New exchange rate & investment for quality system are incorporated (billion of yen) Original Forecast Revised Forecast Revision Net Sales 390.0 383.0 -7.0 Operating Income 67.0 (17.2%) 62.6 (16.3%) -4.4 O di Ordinary IIncome 65 0 (16.7%) 65.0 (16 7%) 58 0 (15.1%) 58.0 (15 1%)

  19. Slide 19: ©Terumo Corporation

    2011/10/27 ©Terumo Corporation 19/26

  20. Slide 20: Reference

    €DTERUMO Reference

  21. Slide 21: Consolidated 1H Results (Pro-forma comparison)

    Consolidated 1H Results (Pro-forma comparison) Increase in sales & income even at Pro-forma comparison (billion of yyen) ( ) Corresponding 1H period of last yr YoY% Mar. 2012 P Pro-forma f b basis i *1 Net Sales 187.4 190.7 +2% Gross Profit 100.4 (53.6%) 103.1 (54.1%) +3% SG&A Expenses SG& pe ses 68

  22. Slide 22: 1H Results to 1H Forecast

    1H Results to 1H Forecast (billion of yen) 1H Forecast 1H Results Variance Impact of foreign exchange Net Sales 191.0 190.7 -0.3 +0.2 Operating Income 32 7(17 1%) 32.7(17.1%) 34 6(18 2%) +1.9 34.6(18.2%) +1 9 +0.1 +0 1 Ordinary Income 31.5(16.5%) 31.3(16.4%) -0.2 Net Income 18.5( 9.7%) 17.7( 9.3%) -

  23. Slide 23: 1H Results to Mar. 2012 Forecast

    1H Results to Mar. 2012 Forecast (billion of yen) Forecast 1H Progress Mar. 2012 Results Net Sales 383 0 383.0 190.7 190 7 50% Operating Income 62.6 (16.3%) 34.6 (18.2%) 55% Ordinary Income 58.0 (15.1%) 31.3 (16.4%) 54% N t IIncome Net com 32 5 ( 88.5%) 32.5 5%) 17 7 ( 99.3%) 17.7 3%) 54% Average ex

  24. Slide 24: Gross Profit, SG&A Expenses, Operating Income

    Excluding BCT & Harvest Gross Profit, SG&A Expenses, Operating Income (%) Gross Profit 52.3 51.7 52.0 51.6 54.2 SG&A Expenses 32.0 32.5 34.7 31.3 33.1 Operating 20.3 19.2 17.3 20.3 21.1 Income Q2 Q3 Q4 Q1 Q2 Mar. 2011 Mar. 2012 (Quarterly: 3 months) 2011/10/27 ©Terumo Corporation 24/26

  25. Slide 25: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates 130 EUR(Mar 2011) EUR(Mar. EUR(Mar. 2012) 117 110 110 US$(M 2011) US$(Mar. 90 US$(Mar. 2012) 82 78 70 Q1 Q2 Q3 Q4 (Quarterly: 3 months) 2011/10/27 ©Terumo Corporation 25/26

  26. Slide 26: 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

Terumo — H1 FY2012 Earnings Presentation on 6ix