Terumo Corporation · TSE:4543
Terumo — H1 FY2018 Earnings Presentation
21 slides from Terumo's earnings presentation, Nov 8, 2018
Slide 1: Financial Results for the First Half of Fiscal Year Ending March 31, 2019 (FY2018)
Financial Results for the First Half of Fiscal Year Ending March 31, 2019 (FY2018) Terumo Corporation Managing Executive Officer, Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake November 8, 2018
Slide 2: In Line with the Revised Guidance
In Line with the Revised Guidance (billion yen) (億円) YoY% 1H FY17 1H FY18 YoY% (FXN) Revenue 284.6 285.0 +0% +0% Gross Profit 155.4 (54.6%) 154.6 (54.2%) ‐1% ‐0% SG&A Expenses 81.4 (28.6%) 87.0 (30.5%) +7% +7% R&D Expenses 18.3 ( 6.4%) 23.8 ( 8.3%) +30% +30% Other Income and Expenses 1.5 3.7 ‐ ‐ Ope
Slide 3: Results with FXN Outperformed 1H FY18 Guidance
Results with FXN Outperformed 1H FY18 Guidance (billion yen) 1H FY18 1H FY18 1H FY18 Gap Results Gap Guidance Results w/ FXN* Revenue 282.0 285.0 +3.0 283.2 +1.2 Operating Profit 48.0 47.6 ‐0.4 48.3 +0.3 Adjusted Operating 55.0 55.3 +0.3 55.8 +0.8 Profit Profit for the Year 34.5 34.5 0.0 ‐ ‐ *Assume
Slide 4: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (billion yen) 1H FY17 1H FY18 1.Amortization of acquired 7.1 7.5 intangible assets 2.Temporary gain and loss* 0.5 0.2 Adjustment 7.6 7.7 *Adjusted items Adjusted item Adjust‐ Acquisition related cost Nonlife insurance ment Lawsuit settlement income Milest
Slide 5: Adjusted Operating Profit Variance Analysis (IFRS)
Adjusted Operating Profit Variance Analysis (IFRS) 1.4 0.7 (billion yen) 1.6 Gross G/P margin Price increment +0.3 7.6 5.6 by sales JP increase Reimburse‐ ment ‐1.9 Increase of 3.4 0.3 0.0 SG&A FX Others Increase 64.8 of R&D 7.7 57.2 55.3 47.6 1H FY17 1H FY17 1H FY18 1H FY18 Operating Adjusted Adjus
Slide 6: Revenue by Region
Revenue by Region 1H FY18 1H FY17 Revenue Year‐on‐Year Revenue Comparison 100% = 285.0BJPY billion yen YoY% Comments ( ) FXN Cardiac and Vascular Company made a negative growth due to JP reimbursement 91.1 revision and shipping delay. General Hospital Japan ‐2% Company and Blood Management Company 3
Slide 7: Revenue by Business Segment
Revenue by Business Segment 1H FY18 1H FY17 Revenue Year‐on‐Year Revenue Comparison 100% = 285.0BJPY billion yen YoY% Comments ( ) FXN Cardiac 153.5 ‐3% Made a negative growth due to 54% and (‐3%) shipping delay along with JP 157.6 Vascular reimbursement price revision 81.2 +5% Maintained steady mom
Slide 8: Cardiac and Vascular: In Line with the Revised Guidance by and Large
Cardiac and Vascular : In Line with the Revised Guidance by and Large (billion yen) 1H FY17 1H FY18 YoY% Major Topics Impact ( ) FXN TIS: Saw the decrease in the revenue of 157.6 153.5 therapeutic devices in cardiology along w/ the impact of JP reimbursement price revision and ‐3% shipping delay ‐6.
Slide 9: General Hospital: Continuously Achieved a Steady Growth in Both Revenue and Profit
General : Continuously Achieved a Steady Growth in Both Hospital Revenue and Profit (billion yen) 1H FY17 1H FY18 YoY% Major Topics Impact ( ) FXN General hospital products: Infusion lines as well as needlefree closed system transfer device in JP drove an overall growth +1.0 77.7 81.2 Pharmaceutical
Slide 10: Blood Management: Continued Achieving Steady Revenue Growth Mainly in Blood Center Products
Blood : Continued Achieving Steady Revenue Growth Management Mainly in Blood Center Products (billion yen) 1H FY17 1H FY18 YoY% Major Topics Impact ( ) FXN 49.2 50.2 Blood center products: Automated blood processing system drove growth in JP and Americas +1.3 +2% Revenue Therapeutic apheresis: Made
Slide 11: Major Topics in 1H FY18
Major Topics in 1H FY18 (CSR) Held “Terumo Junior Medical Challenge” at Terumo Medical Pranex for Corporate the first time, targeting the local junior high school students (Aug) Established a satellite office in Fuchu, Tokyo in a course of promoting work‐ style reform, and to enhance the BCP as we
Slide 12: New Products Pipeline in FY18
New Products Pipeline in FY18 Category Products Region Category Products Region Closure device for distal Access radial approach JP Next generation of oxygenator ◎ JP, US CV Next generation of blood EU, US, Asia: PTCA balloon US Q3 parameter monitoring system Coronary PTCA balloon JP, EU, Asia Vascu
Slide 13: 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 14: Reference
Reference <“TERUMO 14/21
Slide 15: 1H FY18 Revenue and Growth by Region
1H FY18 Revenue and Growth by Region (billion yen) Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac and 22.3 131.1 39.4 59.5 17.0 15.3 153.5 Vascular (‐15%) (+0%) (‐2%) (+2%) (+1%) (‐4%) (‐3%) Out of C&V Interventional 16.8 105.3 31.3 45.6 15.8 12.5 122.1
Slide 16: Operating Expenses
Operating Expenses (billion yen) 1H FY17 1H FY18 YoY YoY% YoY% (FXN) Salaries & Wages 41.1 43.3 +2.2 +5% +5% Sales Promotion 8.0 8.7 +0.7 +8% +8% Logistical Costs 6.1 6.6 +0.5 +8% +8% Depreciation & 6.9 6.9 ‐0.0 ‐0% +0% Amortization Others 19.4 21.6 +2.2 +11% +11% SG&A Expenses Total 81.4 87.0 +5.6
Slide 17: Quarterly Results
Quarterly Results (billion yen) FY17 Q2 Q3 Q4 FY18 Q1 Q2 (Jul‐Sep) (Oct‐Dec) (Jan‐Mar) (Apr‐Jun) (Jul‐Sep) Revenue 145.3 152.3 150.8 143.0 142.0 Gross Profit 79.5 83.2 80.7 79.9 74.7 (54.7%) (54.6%) (53.5%) (55.8%) (52.6%) SG&A Expenses 41.2 43.8 45.9 43.5 43.5 (28.4%) (28.7%) (30.4%) (30.4%) (30.5%
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 IFRS basis from FY17 31.5 Include intangib
Slide 19: Cash Flow
Cash Flow Operating CF Investment and Finance CF +39.1 ‐26.2 (billion yen) 15.8 21.5 Income 11.1 taxes Depreci‐ Increase of ation and working 23.2 amorti‐ capital zation Others 44.5 CAPEX 9.5 6.5 Dividends Profit 180.7 before 167.8 tax Cash at end of CAPEX = C.i.P. record basis Cash at end of FY17 C
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: 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