Terumo Corporation · TSE:4543
Terumo — H1 FYE 3/2007 Earnings Presentation
23 slides from Terumo's earnings presentation, Oct 30, 2006
Slide 1: Half Year Financial Result for FYE Mar. 2007
TERUMO CORPORATION Half Year Financial Result for FYE/ Mar.2007 October 30, 2006 1
Slide 2: Sales and profits increased to a record 2-digit growth
Sales and profits increased to a record 2-digit growth (Unit: billion yen) Interim Mar. 06 Interim Mar. 07 Rate of change Net Sales 119.8 132.7 10.7% Gross Profit (%) 65.3 (54.5%) 73.3 (55.2%) 12.2% SGA Expenses (%) 40.3 (33.6%) 44.6 (33.6%) 10.7% Operating Income (%) 25.0 (20.9%) 28.6 (21.6%) 14.5%
Slide 3: Net Sales (by product group)
Net Sales (by product group) (Unit: billion yen) 10. 7% 132.7 119.8 CV and vascular grafts 22.5 (Growth rate: 21.1%) 18.6 +3.9 Interventional products 30.3 24.1 +6.2 (Growth rate: 25.8%) 13.8 +0.2 14.1 Home health care products (Growth rate: 1.7%) General hospital products 63.4 +2.5 65.8 (Growth rat
Slide 4: Net Sales (by Region)
Net Sales (by Region) (Unit: billion yen) Consolidated Net Sales +12.8 132.7 10.7% (7.8%) 119.8 Growth rate: 11.4 +1.9 Asia 19.4% (12.2% ) 9.5 +6.3 24.7 18.4 Americas 33.9% (27.6% ) 18.6 +4.2 22.8 Europe 22.6% (14.0% ) 73.3 73.8 Overseas 26.4% (19.0%) +0.5 Japan 0.7% Interim fiscal ending Mar. 06 In
Slide 5: Gross Profit Margin: 55.2%; +0.7pt compared to previous year
Gross Profit Margin: 55.2%; +0.7pt compared to previous year Positive factors compared Negative factors compared to to previous year: +1.3pt previous year: ▲0.6pt Effect of production increase Price and others decline Shift to higher-profit products ＋0.2 ▲0.6 ＋1.1 +0.7pt 5
Slide 6: Details of SGA Expenses
Details of SGA Expenses (Unit: billion yen) 44.6 40.3 +4.3 33.6% (Increase rate) 33.6% 7.8 R&D ( 5.8%) +0.4 7.3 4.4 +0.4 Sales promotion and 4 3.8 advertising (10.7%) +0.3 3.6 Logistics ( 7.7%) 15.4 13.6 +1.8 personnel (13.2%) Others (11.9%) +1.4 11.8 13.2 Interim fiscal ending Mar. 2006 Interim fis
Slide 7: Forecast for the Full Fiscal Year Revised Upward
Forecast for the Full Fiscal Year Revised Upward (Unit: billion yen) Mar. 2007 Previously announced Revised Increase Net Sales 267.0 273.0 +６.０ Operating Income (%) 54.7 (20.5%) 57.5 (21.1%) +２.８ Ordinary Income (%) 54.2 (20.3%) 57.5 (21.1%) +３.３ Net Income (%) 33.7 (12.6%) 37.0 (13.6%) +３.３ In-hous
Slide 8: About first half performance
About first half performance ◆Increased international sales driven by the growth of cardiac and vascular products contributed to corporate growth ◆Domestic performance affected by NHI price revisions but still recovering, thanks to measures taken to address market changes ＜Domestic market changes＞ ‐
Slide 9: DPC-applied hospitals drastically increasing now and in the future
DPC-applied hospitals drastically increasing now and in the future The The key key isis the the strategy strategy in in view view of of about about 500,000 500,000 bedsbeds atat current current and and potential potential DPC DPC hospitals hospitals •DPC Mar. 06 or About 144 hospitals 95,000 beds be
Slide 10: Changes in hospitals after introducing DPC (1)
Changes in hospitals after introducing DPC (1) Standardization and streamlining of products General GeneralI.V. I.V.solution solution General GeneralI.V. I.V.solution solution (maintenance (maintenancefluid fluid)) ((Ringer’s Ringer’slactate lactate)) 1.5 times 1.3 times <Terumo sales comparison> Re
Slide 11: Changes in hospitals after introducing DPC (2)
Changes in hospitals after introducing DPC (2) Increase of risk management products Risk Riskmanagement managementmedical medicalproducts products Large-volume Large-volumeFULCALIQ FULCALIQ 50 times 1.2 times <Terumo sales comparison> Relative ratio of sales during this interim period when the sales
Slide 12: Addressing changes/future initiatives
Addressing changes/future initiatives ◆Increasing DPC hospitals and expanding business opportunities - Take advantage of “safety improvement” and “higher efficiency of operations” - Apply “DPC effects” to other acute care hospitals ◆Increasing special hospitals - Approach to specialist hospitals uti
Slide 13: Topics
Topics | ann
Slide 14: Nobori clinical trial, interim report
Nobori clinical trial, interim report Excerpts from document published at TCT06 Nobori Control group Late Loss *) 0.15mm 0.32mm Restenosis 0% 0% Stent thrombosis 0% 0% * Optimum intima hypertrophy is said to be 0.10 to 0.20mm Remarks: ・Better than the results of control group ・Stent thrombosis didn'
Slide 15: "DuraHeart" LVAS
"DuraHeart" LVAS ■ Europe: ・2Q, 2006 Clinical trial completed ・4Q, 2006 Scheduled to obtain CE mark ・2007 Commercialization ■U.S.: ・2007 Application for clinical trial planned ■ Japan: DuraHeart ・In preparation process for clinical trial 15
Slide 16: Interventional business in the U.S.
Interventional business in the U.S. Estimated annual sales: 13.5 billion yen (billion yen) 4 (Planned) (Planned) 3 Mar. 06 2 Mar. 07 1 0 １Q ２Q ３Q ４Q 16
Slide 17: Cerebral aneurysm coil (MicroVention) Sales have been steady
Cerebral aneurysm coil (MicroVention) Sales have been steady ・Interim period results (Global): 2.2 billion yen (Annual plan: 5 billion yen) ・The coil market has enjoyed more than 15% yearly growth. Coated coil ・High filling factor and cure rate are expected Platinum bare coil ・Flexibility and high o
Slide 18: Sales of Vascutek products have steadily grown
Sales of Vascutek products have steadily grown (Unit: billion yen) 9.5 billion yen Stent graft (Anaconda) 10 Trend in net sales of Vascutek ■Europe: Launched in April 2005 9 products (M$) Sales plan (2006): 0.6 billion yen 8 7 ■U.S.: Clinical test stage 6 5 billion yen 5 4 3 2 1 (in global) 0 When p
Slide 19: Overview of Terumo's blood transfusion business
Overview of Terumo's blood transfusion business Blood bags Market of Blood bags (Worldwide: 22 billion yen) Baxter Others ３８％ ３０％ Leukocyte removal filter Fresenius ８％ Apheresis systems and blood Terumo ２４％ collecting kit （Terumo estimate ） 19
Slide 20: About contrast medium
About contrast medium (Angiographic catheters) Results during the interim period: 0.8 billion yen (Sales plan for 2006 in Japan: 1.6 billion yen) 20
Slide 21: Sales of diabetes care products still growing
Sales of diabetes care products still growing (Unit: billion yen) 50 Market scale (blood glucose 10 Sales of our diabetes care products (Japan) monitors) CAGR: 6.1% Market scale (glucose monitors) (Japan) 9 40 8 7 30 Net sales of Terumo's diabetes care products 6 CAGR: 21.2% 20 5 Mar. 04 Mar. 05 Mar
Slide 22: Summary
Summary ◆Sales and profits both achieved two-digit growth rates ◆Domestic operation focusing on addressing the changes in the market ◆International sales steadily growing ◆New key product developments in progress 22
Slide 23: 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