Terumo Corporation · TSE:4543
Terumo — Q3 FY2019 Earnings Presentation
22 slides from Terumo's earnings presentation, Feb 6, 2020
Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2020 (FY2019)
Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2020 (FY2019) Terumo Corporation Chief Accounting and Financial Officer Naoki Muto February 6, 2020
Slide 2: Highest-ever Q3YTD Revenue and Adjusted Operating Profit
Highest-ever Q3YTD Revenue and Adjusted Operating Profit (billion JPY) YoY% FY18 Q3YTD FY19 Q3YTD YoY% (FXN) Revenue 443.6 470.1 +6% +9% Gross Profit 242.2 (54.6%) 258.6 (55.0%) +7% +11% SG&A Expenses 132.0 (29.8%) 136.8 (29.1%) +4% +7% R&D Expenses 36.0 ( 8.1%) 37.0 ( 7.9%) +3% +5% Other Income and
Slide 3: Adjusted Operating Profit Variance Analysis
Adjusted Operating Profit Variance Analysis (billion JPY) 6.0 3.9 1.9 Price Gross MDR -2.7 7.3 margin -1.0 JP Reimburse- IT SG&A 3.8 0.6 25.0 invest- increase R&D ment Others ment 6.4 -1.2 increase -0.9 FX 12.1 G/P 12.7 increment by sales increase 98.4 91.2 86.3 78.5 FY18 Q3YTD FY18 Q3YTD FY19 Q3YTD
Slide 4: FX Impact on Adjusted Operating Profit Variance Analysis
FX Impact on Adjusted Operating Profit Variance Analysis Q3YTD FX impact -6.4 B JPY : -2.3 B JPY (1H) plus -4.1 B JPY (Q3) <Details of -4.1 B JPY> -2.3 B JPY from flow : Impact of JPY appreciated against EUR and currencies in emerging countries compared with FY18 Q3 Rate comparison (JPY) FY18 Q3 a
Slide 5: Revenue by Region
Revenue by Region FY19 Q3YTD FY18 Q3YTD Revenue Year-on-Year Revenue Comparison 100% = 470.1 B JPY billion JPY YoY% Comments ( ) FXN Japan : Steady high single digit growth in Cardiac and Vascular. Solid momentum in line with the guidance for General Hospital, 147.8 Japan 142.2 +4% as well as Blood
Slide 6: Revenue by Business Segment
Revenue by Business Segment FY19 Q3YTD FY18 Q3YTD Revenue Year-on-Year Revenue Comparison 100% = 470.1 B JPY billion JPY YoY% Comments ( ) FXN Driven by continuous double digit Cardiac 263.5 +9% growth in TIS and Neurovascular 56% and business. The momentum of CV 241.0 (+14%) Vascular business impro
Slide 7: Cardiac and Vascular: Positive Growth in All Businesses
Cardiac and : Positive Growth in All Businesses. Vascular Continued Double Digit Growth in Profit (billion JPY) FY18 FY19 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN 263.5 241.0 TIS：Continued double digit growth overseas +15.6 Neurovascular : Continuous double digit growth driven by globally strong
Slide 8: General Hospital: Revenue and Profit in Line with the Guidance
General Hospital : Revenue and Profit in Line with the Guidance (billion JPY) FY18 FY19 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN General hospital products : Impact of the financial challenge in Indonesian national health insurance, 125.9 127.8 +2% etc. -0.7 Revenue (+2%) Pharmaceutical and nutri
Slide 9: Blood Management: Solid Momentum Excluding FX Impact
Blood Management : Solid Momentum Excluding FX Impact (billion JPY) FY18 FY19 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN Blood center products : Driven by software update for the automated blood collection 76.6 78.7 +3% system +2.1 Revenue (+7%) Therapeutic apheresis : Recoil of replacement with t
Slide 10: Reiterate the FY19 Guidance
Reiterate the FY19 Guidance EUR : -0.7 CNY : -0.4 (billion JPY) Emerging countries : -0.6 Price erosion less Flow total : -1.7 than expected Stock total : -0.8 FX (1H) 0 0 The impact of 0.5 0.5 SG&A the novel R&D GP 2.5 coronavirus increase outbreak FX (2H) +7.5 +7.0 +5.0 1H FY19 OP variance FY19 fo
Slide 11: Major Topics in FY19 Q3
Major Topics in FY19 Q3 Has received “GOOD DESIGN AWARD” for twenty four consecutive years (Oct) Donated through Japanese Red Cross Corporate for the relief of Typhoon Hagibis in JP (Oct) Condenced liquid nutrition Closed hazardous drug “Terumeal Uplead-mini” infusion system Pulsed xenon UV Estab
Slide 12: New Products Pipeline in FY19
New Products Pipeline in FY19 Category Products Region Launch Category Products Region Launch Closure device for distal General Next generation of syringe pump Access radial approach JP FY20 hospital JP Q4 Narcotic analgesic for EU, postoperative pain management Coronary PTCA balloon Launched JP Lau
Slide 13: Reference
Reference ~TERUMO 43/22
Slide 14: FY19 Q3YTD Revenue and Growth by Region
FY19 Q3YTD Revenue and Growth by Region (billion JPY) Business Overseas Grand Japan Segment Subtotal Europe Americas China Asia Total Cardiac and 38.2 225.3 64.1 103.1 30.9 27.2 263.5 Vascular (+8%) (+15%) (+10%) (+15%) (+22%) (+15%) (+14%) Out of C&V Interventional 28.5 185.4 52.2 81.8 28.9 22.5 21
Slide 15: Operating Expenses
Operating Expenses (billion JPY) FY18 Q3YTD FY19 Q3YTD YoY YoY% YoY% (FXN) Salaries & Wages 65.5 66.6 +1.1 +2% +5% Sales Promotion 13.3 14.6 +1.3 +10% +13% Logistical Costs 10.1 10.3 +0.3 +3% +5% Depreciation & 10.4 13.9* +3.5 +34% +37% Amortization Others 32.7 31.4* -1.3 -4% -2% SG&A Expenses Total
Slide 16: Quarterly Results
Quarterly Results (billion JPY) FY18 Q3 Q4 FY19 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Revenue 158.6 155.9 152.5 154.8 162.9 Gross Profit 87.6 84.3 85.2 86.3 87.2 (55.2%) (54.1%) (55.8%) (55.8%) (53.5%) SG&A Expenses 45.0 46.7 44.5 45.1 47.2 (28.4%) (29.9%) (29.2%) (29.1%) (29.0%
Slide 17: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit : Adjustments (billion JPY) FY18 Q3YTD FY19 Q3YTD Operating profit 78.5 86.3 Adjustment 1. Amortization of acquired +11.0 +11.9 intangible assets Adjustment 2. Non-recurring profit or loss +1.7 +0.3* Adjusted operating profit 91.2 98.4 <General examples of adjustment items>
Slide 18: CAPEX and R&D Expenses
CAPEX and R&D Expenses (billion JPY) Expand investment in Amortization of Amortization 75.0 production capacity and acquired of acquired space as well as IT in FY19 intangible assets intangible 63.1 60.8 Under IFRS since FY17 and goodwill assets Depreciation includes 49.0 45.4 43.6 42.0 44.0 a
Slide 19: Cash Flows
Cash Flows Operating CF Investing & Financing CF +73.3 -83.3 (billion JPY) 22.7 38.2 Income taxes 27.7 Depreciation and amortization Working capital increase 85.5 63.1 CAPEX Profit 20.5 Others 123.0 before tax Dividends 0.3 113.0 Cash at the CAPEX = C.i.P. record basis Cash at the end of FY18 Cash a
Slide 20: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (billion JPY) USD EUR CNY Revenue 1.7 0.8 2.4 Adjusted Operating 0.0 0.5 1.3 Profit <Reference> Impact when JPY is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating -0.1 1.0 6.5 1.3 2.0 3
Slide 21: The Status of Convertible Bonds
The Status of Convertible Bonds Detail of the bonds (issued in Dec. 2014) *After two-for-one stock split implemented in Apr. 2019 Aggregate Contingent Number of shares Conversion price Maturity principal amount Coupon conversion trigger required to be issued (JPY) (billion JPY) price (JPY) for con
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