Terumo Corporation · TSE:4543
Terumo — Q1 FYE March 2008 Earnings Presentation
25 slides from Terumo's earnings presentation, 2007
Slide 1: Terumo Corporation 1st Quarter Financial Results FYE/Mar. 2008
TERUMO CORPORATION 1st Quarter Financial Results for FYE/ Mar.2008 1
Slide 2: Sales and Profits Enjoyed Double-digit Growth
Sales and Profits Enjoyed Double-digit Growth (Unit: Billion yen) Q1 FYE/Mar. 2007 Q1 FYE/Mar. 2008 Rate of change Net Sales 64.3 75.5 17.3% Gross Profit (%) 35.9 (55.7%) 41.5 (55.0%) 15.7% S.G.A Expenses (%) 22.4 (34.8%) 24.5 (32.5%) 9.4% Operating Income (%) 13.5 (20.9%) 17.0 (22.5%) 26.2% Ordinar
Slide 3: Net Sales (by Region)
Net Sales (by Region) (Unit: Billion yen) 75.5 +11.1 Growth Rate 64.3 Growth rate 17.3% (13.1%) 7.6 +1.9 5.6 14.5 +2.7 Asia & Others 34.0% (24.1%) 11.8 14.3 +2.8 Americas 23.2% (17.6%) 11.5 Europe 24.3% (11.0%) 39.1 +3.7 35.4 Outside Japan 25.8% (16.3%) Japan 10.5% Q1 FYE/Mar. 2007 Q1 FYE/Mar. 2008
Slide 4: Net Sales (by Product Group)
Net Sales (by Product Group) (Unit: Billion yen) +11.1 Consolidated total: 17.3% growth 75.5 64.3 CV and vascular grafts 12.1 (G/R: 7.0%) +0.8 11.3 Interventional products 19.1 +4.2 (G/R: 27.8%) 14.9 7.5 +0.7 Home health care products 6.9 (G/R: 9.6%) General hospital products 36.7 +5.5 (G/R: 17.8%)
Slide 5: Details of S.G.A Expenses
Details of S.G.A Expenses (Unit: Billion yen) (% in change) 24.5 +2.1 R&D (+0.5%) 22.4 3.8 - 3.8 Sales promotion and 2.3 +0.1 advertising (+4.2%) 2.2 2.1 1.9 +0.2 Logistics (+11.6%) 7.8 8.8 +1.0 Personnel (+12.9%) 7.4 +0.8 Others (+11.5%) 6.7 Q1 FYE/Mar. 2007 Q1 FYE/Mar. 2008 S.G.A Expenses rate 34.
Slide 6: Topics
Topics 6
Slide 7: Terumo's Activities in European Market
Terumo’s Activities in European Market 7
Slide 8: WW Medical Device Market
WW Medical Device Market Europe is the second largest market following America ＜Market scale＞ Europe： US$ 63B China 7% Asia 2% Japan 9% Americas Europe 34% 47% *Global market in 2005: US$185B Reference：Datamonitor (2006); Espicon (2005) 8
Slide 9: Sales in the European Market
Sales in the European Market Billion yen 50 CAGR 16.8% 45 40 35 CAGR 8.9% 30 25 20 15 10 Mar. 2000 Mar. 2001 Mar. 2002 Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006 Mar. 2007 9
Slide 10: Sales in the European Market
Sales in the European Market Asia & Asia & Europe Middle east Middle east 12％ Europe 17％ Americas Japan Americas Japan Sales in FYE Mar. 2000 Sales in FYE Mar. 2007 10
Slide 11: Sales by Business in the Last 5 Years
Sales by Business in the Last 5 Years Billion yen ◆ Cardiovascular business has grown drastically ◆ General hospital products have shown steady sales 50 Cardiovascular products 40 General hospital products 30 20 CAGR 16.8% 10 FYE Mar. 2003 – FYE Mar.2007 0 11 Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006
Slide 12: Broad Product Line-up in Europe
Broad Product Line-up in Europe Angiographic catheter ○ Interventional PTCA balloon ○ cardiology Bare stent ○ Drug Eluting Stent Neuro Intervention Cerebral aneurysm coil ○ Peripheral Stent for peripheral vessels Intervention Stent graft ○ Cardiac ･ Vascular Artificial vessel ○ Surgery (with built-i
Slide 13: Expanding to New Domains
Expanding to New Domains Peripheral stent Artificial vessel with MISAGO built-in valve BioValsalva ◆ Especially useful for thighs and armpits ‐ To be launched in Sep. 2007 ◆First-in-the-world ‐ FYE Mar. 2008: 400M yen vascular grafts with built 13 in biological valve (estimated)
Slide 14: B2B business in Europe
B2B business in Europe Sales K-pack Needles FYE Mar. 2007: 800M yen （Packaged kits for pharmaceutical companies) FYE Mar. 2008: 1,100M yen (estimated) 14
Slide 15: Sales Bases and Their Covering Area
Sales Bases and Their Covering Area 東欧・ロシア ＥＵ圏 EU area East Europe, Russia その周辺国 and surrounding countries Scandianvia East Europe and Russia UK Benelux Germany France Spain Italy Turkey 15
Slide 16: Growth Driven by East Europe, Russia, Turkey, etc.
Growth Driven by East Europe, Russia, Turkey, etc. Billion yen 45 East Europe, 40 Russia & Turkey 35 CAGR 20% 30 25 EU 20 CAGR 13% 15 10 Total 5 CAGR 14% 0 Mar. 2003 Mar. 2004 Mar. 2005 Mar. 2006 Mar. 2007 16 * Excluding sales by Vascutek
Slide 17: Other Topics
Other Topics 17
Slide 18: Business Collaboration and Mutual Investment with KIRIN
Business Collaboration and Mutual Investment with KIRIN Overview ◆Strengthen of joint R&D of prefilled syringes ◆Investigation of R&D of projects integrating the liposome (TERUMO) and Drug (KIRIN) technology ◆Investigation of joint projects regarding treatment of chronic kidney disease ◆Terumo and t
Slide 19: Market in Japan (Prefilled syringes)
Prefilled syringes Market in Japan （Unit: Million syringes） 160 120 80 Terumo entered the market 40 0 Mar. 20 0 0 Mar. 2 0 0 1 Mar. 2 0 0 2 Mar. 2 0 0 3 Mar. 2 0 0 4 Mar. 2 0 0 5 Mar. 2 0 0 6 Mar. 20 07 （Shipped syringe basis: From IMS data） ©2007 IMS Japan 19 Source： ＩＭＳ ＪＰＭ April 1999 to March 200
Slide 20: Terumo's Sales in Japan (Prefilled syringes)
Prefilled syringes Terumo’s Sales in Japan （Unit: Billion yen） 12.9 billion yen 14 Contrast media, (estimated) “Magnescope” 12 Anticoagulant drug, “Hepaflush” 10 8 6 Medical emergency drugs 4 2 0 Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 21: Future Direction of Business
Prefilled syringes Future Direction of Business Shifting to highly added-value business ◆Higher value-added drugs - Antibody drugs, vaccines, New business anticancer agents, etc. ◆ Increasing sales of ◆Higher value-added devices “MINOFIT” - Improved safety and operability ◆ Increasing contrast - Opt
Slide 22: DuraHeart Left Ventricular Assist System
Left Ventricular Assist System, “DuraHeart” • Europe – First shipment in July, sales planned to start in Q2 • America – Clinical trial application planned within this fiscal year • Japan – Selected as an early approval item 22
Slide 23: Drug Eluting Stent Nobori
Drug Eluting Stent “Nobori” • Europe – Applied for CE Mark • Japan – Clinical trial started on July 4 • Asia – First shipment in July, first sales commenced 23
Slide 24: Summary
Summary • Good start with double-digit growth in both sales and profits • Uncertainty including effects of foreign exchange persisting, allowing for no optimism • No revision of projected business results at this time 24
Slide 25: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: [email protected] This document contains forward-looking statements that reflect management’s current views with respect to certain future events and financial performance. Actual results may differ materially from those project