Terumo Corporation · TSE:4543
Terumo — Q3 FY2024 Earnings Presentation
22 slides from Terumo's earnings presentation, Feb 13, 2025
Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2025 (FY2024)
Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2025 (FY2024) February 13, 2025 Jin Hagimoto Chief Financial Officer Terumo Corporation I'm Hagimoto, Terumo's CFO. This presentation provides an overview of Terumo's financial results for the third quarter of the fiscal year en
Slide 2: Forward-Looking Statements and Use of Document
Forward-Looking Statements and Use of Document 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 intended to be guarantees of future events or performanc
Slide 3: Highlights
Highlights Revenue Record highs both for the quarter and Q3 YTD Global demand continues to expand, driven by US; foreign exchange effects also contributed to company-wide growth of +13% Profit Record highs in all areas of operating profit, adjusted operating profit, and profit for the period for bot
Slide 4: P&L, FCF
P&L, FCF Revenue: Expanding global demand, led by TIS and blood center business Operating Profit: Improved profit margins due to sales growth, steady progress in pricing measures and profit improvement measures Change 100M JPY FY23 Q3 YTD FY24 Q3 YTD Change excluding FY23 Q3 FY24 Q3 Change FX impact
Slide 5: OP Variance Analysis (Q3): Higher sales driven by continued demand
OP Variance Analysis (Q3): Higher sales driven by continued demand (100M JPY) 15 42 G/P increment by sales increase: 19 553 Driven by TIS and the blood center business 96 Price +9 -51 Gross margin: -9 Effects of profit improvement measures, and Reimbur- SG&A one-time costs were recorded in the same
Slide 6: OP Variance Analysis (Q3 YTD): Contribution from pricing measures and strong sales
OP Variance Analysis (Q3 YTD): Contribution from pricing measures and strong sales (100M JPY) 89 134 1,593 94 254 G/P increment by sales increase: Price -135 Driven by C&V, mainly TIS +69 -39 1,335 FX SG&A Gross margin: Gross Reimbur- increase 1,197 margin sement R&D Mitigation of inflation and effe
Slide 7: Revenue by Region: Steady progress globally, driven by US and Europe
Revenue by Region: Steady progress globally, driven by US and Europe C&V: Cardiac and Vascular, TMCS: Medical Care Solutions, TBCT: Blood and Cell Technologies, TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular, HCS: Hospital Care Solutions, LCS: Life Care Solutions, PS: Pharmace
Slide 8: Regional commentary: China and emerging markets
In China, TIS rebounded from the price decline caused by VBP with an increase in volume. Neuro also continued to grow substantially. In emerging markets such as Asia and the Middle East, the blood center business, which had been strong in the same period of the previous year, saw a decline in sales,
Slide 9: C&V: Global sales and profit exceeded planned figures, driven by US
C&V: Global sales and profit exceeded planned figures, driven by US (C&V: Cardiac and Vascular, TIS: Interventional Systems, Neuro: Neurovascular, CV: Cardiovascular) （100M JPY） Q3YTD Q3YTD Q3 Comments YoY ( ) FX Neutral 4,641 TIS : In China, the impact of VBP on pricing was +352 4,077 offset by inc
Slide 10: TMCS: Revenues and profits increased
Revenues and profits increased due to strong sales including one-time TMCS: factors and the effects of pricing measures (TMCS: Medical Care Solutions) （100M JPY） Q3YTD Q3YTD Q3 Comments YoY ( ) FX Neutral HCS : In Japan, sales increased due to the +91 1,597 Hospital Care effects of the pricing measu
Slide 11: TBCT: Innovation business
Both sales and income increased due to accelerated development of the plasma TBCT: innovation business (TBCT: Blood and Cell Technologies) （100M JPY） Q3YTD Q3YTD Q3 Comments YoY ( ) FX Neutral Blood Center : Sales of whole blood and component blood +157 1,482 Solutions collection systems were strong
Slide 12: Reference
Reference ©TERUMO CORPORATION 11
Slide 13: P&L (QoQ)
P&L (QoQ) (100M JPY) FY23 Q3 Q4 FY24 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Revenue 2,391 2,389 2,582 2,505 2,636 Gross Profit 1,266 (52.9%) 1,243 (52.0%) 1,376 (53.3%) 1,395 (55.7%) 1,451 (55.1%) SG&A Expenses 707 (29.6%) 737 (30.9%) 748 (29.0%) 732 (29.2%) 777 (29.5%) R&D Expen
Slide 14: SG&A (QoQ)
SG&A (QoQ) (100M JPY) FY23 Q3 Q4 FY24 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Salaries & Wages 371 373 398 384 406 Sales Promotion 54 54 52 47 54 Logistics Costs 49 51 51 59 56 Depreciation and 65 66 70 68 70 Amortization Others 168 192 178 175 190 SG&A Expenses Total 707 737 748
Slide 15: SG&A (YoY)
SG&A (YoY) (100M JPY) YoY% FY23 Q3 FY24 Q3 YoY YoY% excluding FX FY23 Q3 FY24 Q3 YoY YoY% YTD YTD impact Salaries & Wages 1,056 1,188 132 12% 7% 371 406 35 9% Sales Promotion 147 153 6 4% 0% 54 54 0 0% Logistics Costs 142 166 23 17% 12% 49 56 8 16% Depreciation and 184 207 24 13% 8% 65 70 5 8% Amort
Slide 16: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (100M JPY) FY23 Q3 YTD FY24 Q3 YTD FY23 Q3 FY24 Q3 Adjusted Operating Profit 1,197 1,593 441 553 Adjustment 1. Amortization of -147 -161 -50 -52 acquired intangible assets Adjustment 2. Non-recurring profit or loss 5 -97 -1 -43 Operating Profit 1,055 1,335 390
Slide 17: CAPEX, Depreciation and Amortization, R&D Expenses
CAPEX, Depreciation and Amortization, R&D Expenses (100M JPY) FY24Q3 FY24 FY21 FY22 FY23 YTD Guidance CAPEX 692 758 784 564 930 Depreciation and Amortization 532 635 702 585 770 Amortization of acquired intangible assets 161 188 200 157 200 Others 371 447 502 428 570 CAPEX = Construction in progress
Slide 18: Cash Flow (Q3 YTD)
Cash Flow (Q3 YTD) Operating CF Investing & Financing CF +1,443 -1,366 (100M JPY) *** 436 Debt 640 80 Repayment Income **** Issuance of taxes, etc. Working 564 Bonds, Proceeds capital from Depreciation gains and borrowings 1,318 and losses ** amortization CAPEX 301 163 161 1,349 356 55 1,148 Share b
Slide 19: Cash Flow (Q3)
Cash Flow (Q3) Operating CF Investing & Financing CF +434 -257 (100M JPY) 221 175 79 127 264 Income taxes, etc. Working 153 150 467 capital 278 Depreciation ** and gains and CAPEX *** amortization losses Issuance of 216 192 Bonds, Proceeds Share Profit before from buy-backs tax borrowings Dividends
Slide 20: Free Cash Flow: 93.9 B JPY (YoY +55.8 B JPY)
Free Cash Flow：93.9 B JPY（YoY +55.8 B JPY） 436 436 (100M JPY) 640 640 261 80 418 Income taxes, etc. Working capital 412 564 Depreciation gains and 564 and losses 61 amortization 1,443 * CAPEX 1,318 851 1,009 1,443 Others 1,318 621 939 939 175381 FY24 Operating (Ref) FCF Q3 YTD CF FY23 Q3 Profit befo
Slide 21: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (Flow) (100M JPY) USD EUR CNY Revenue 25 11 39 Adjusted Operating Profit 1 5 23 Impact of 1 JPY depreciation (Stock) USD EUR CNY Adjusted Operating Profit -2.5 -0.6 -2.0 ©TERUMO CORPORATION 20
Slide 22: ~“TERUMO
~“TERUMO