Terumo Corporation · TSE:4543
Terumo — FY2024 Earnings Presentation
28 slides from Terumo's earnings presentation, May 14, 2025
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2025 (FY2024)
Financial Results for the Fiscal Year Ended March 31, 2025 (FY2024) May 14, 2025 Jin Hagimoto Chief Financial Officer Terumo Corporation
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: Changes in the Segment Names
Changes in the Segment Names C&V: Change of business name Name Before Change New Name Interventional Systems Division Terumo Interventional Systems (TIS) Neurovascular Division Terumo Neuro (TN) Vascular Graft Division Terumo Aortic (TA) TBCT: Revision of the disclosure segments Segments Before Chan
Slide 4: Highlights: FY24 Results, FY25 Guidance
Highlights FY24 Results Revenue exceeded 1 trillion yen for the first time, driven by the US, with company-wide growth of 12% Operating profit reached a record high despite a one-time losses of 24.2 billion yen Record-high Profit for the Year and Free Cash Flow FY25 Guidance Continued global growth,
Slide 5: P&L, FCF
P&L, FCF Revenue: Expanding global demand, driven by TIS and Global Blood Solutions Operating Profit: Increase due to sales growth and steady progress in pricing and profit improvement measures, despite one-time losses Change 100M JPY FY23 Q4 YTD FY24 Q4 YTD Change excluding FY23 Q4 FY24 Q4 Change F
Slide 6: OP Variance Analysis (Q4): Higher sales driven by continued demand
OP Variance Analysis (Q4): Higher sales driven by continued demand (100M JPY) 30 103 G/P increment by sales increase: -14 15 441 Driven by Global Blood Solutions Price 11 Gross +26 Gross margin: margin -74 R&D FX Losses on write-downs of old products due to 371 Reimbur- SG&A Decrease shift to new pr
Slide 7: OP Variance Analysis (Q4 YTD): Contribution from pricing measures and strong sales
OP Variance Analysis (Q4 YTD): Contribution from pricing measures and strong sales 119 (100M JPY) 149 2,034 80 G/P increment by sales increase 357 Price Driven by Global Blood Solution and C&V, Gross +95 -209 mainly TIS margin -29 FX SG&A Reimbur- increase Gross margin: R&D sement increase Easing of
Slide 8: Breakdown of Adjustments of Adjusted Operating Profit (Q4 YTD)
Breakdown of Adjustments of Adjusted Operating Profit (Q4 YTD) （100M JPY） Region/Segment Comments Impairment loss on assets related to the discontinuation of Q4 62 US TIS a PJ for a development of a large-diameter vascular closure device Without Impairment COF ** losses 159 Q4 53 Europe TIS Impairme
Slide 9: Free Cash Flow: 128.3 B JPY (YoY +63.5 B JPY)
Free Cash Flow： 128.3 B JPY（YoY +63.5 B JPY） (100M JPY) 513 854 221 Income Working capital taxes, etc. 825 Depreciation 0 and amortization 2,108 *CAPEX Others 1,546 1,283 649 FY24 Operating (Ref.) FCF Q4 YTD CF FY23Q4 FCF Profit before tax YoY +137 +87 -56 +476 +645 -41 +30 +635 *Construction in pro
Slide 10: 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, TN: Neuro, TCV: Cardiovascular, TA：Aortic, HCS: Hospital Care Solutions, LCS: Life Care Solutions, PS: Pharmac
Slide 11: C&V: Significant growth in global sales and profit, driven by US
C&V： Significant growth in global sales and profit, driven by US (C&V: Cardiac and Vascular) （100M JPY） Q4YTD Q4 Q4YTD Comments (YTD) YoY ( ) FX Neutral 6,244 TIS : Demand remained strong in Europe and +418 5,557 Terumo US. Double-digit growth globally, partly 4,806 Interventional due to the resolut
Slide 12: TMCS: Revenues and profits increased due to strong sales
TMCS： Revenues and profits increased due to strong sales including one-time factors and the effects of pricing measures (TMCS: Medical Care Solutions) （100M JPY） Q4YTD Q4 Q4YTD Comments(YTD) YoY ( ) FX Neutral 2,112 HCS : In Japan, sales increased due to +107 1,917 1,976 Hospital Care price effects
Slide 13: TBCT: Both sales and profit increased due to plasma innovation business
TBCT: Both sales and profit increased due to accelerated development of the plasma innovation business (TBCT: Blood and Cell Technologies) （100M JPY） Q4YTD Q4 Q4YTD Comments (YTD) YoY ( ) FX Neutral 2,003 GBS : Sales of whole blood collection +263 Global Blood systems were strong in Europe and 1,683
Slide 14: FY25 Guidance
FY25 Guidance Revenue: Continued growth led by Blood & Cell Technologies, +7% growth (excluding exchange rate effects) Operating profit：+32% growth (excluding exchange rate effects) due to expanded sales of high-margin products and continuation of profit improvement measures, as well as absence of o
Slide 15: Profit Variance Analysis (FY25 Guidance)
Profit Variance Analysis (FY25 Guidance) (100 M JPY) 70 G/P increment by sales increase: 345 Continuation of growth mainly in Blood & Cell Gross Technologies Margin/ Price -175 -15 Gross margin/ Price : SG&A R&D 2,140 2,034 -119 Gross margin ：Continued profit improvement FX measures were offset by d
Slide 16: Impact of Tariff Policies in US
Impact of Tariff Policies in US Main regions affected by tariffs US sales: 60% manufactured in Americas (including Costa Rica and Puerto Rico), imports from Japan is the largest outside Americas China sales: less than 5% imported from US Tariff Impact and Assumptions If tariffs are enforced under cu
Slide 17: Product and Regional Development in line with Key Measures
Product and Regional Development in line with Key Measures ●Key measures ●Products and Regional Expansion C&V FY25 FY26～ • Growth in market scale segments MAYUMI Expansion of therapeutic areas DSS Thoracoflo • Adoption of radial access approaches WEB Line across diseases Kanshas Extension HydroPack3
Slide 18: Dividend Proposal: Continuous increase per shareholder return policy
Dividend Proposal: Continuous increase per shareholder return policy Shareholder return policy: Continue stable increase in dividend, aiming for 50% total payout ratio Annual dividend (JPY) 30.0 100% 80% 20.0 30.0 60% 22.0 26.0 20.0 40% 10.0 14.5 17.0 20% 0.0 0% FY20 FY21 FY22 FY23 FY24 FY25 Guidanc
Slide 19: Reference
Reference ©TERUMO CORPORATION 19
Slide 20: P&L (QoQ)
P&L (QoQ) (100M JPY) FY23 Q4 FY24 Q1 Q2 Q3 Q4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Revenue 2,389 2,582 2,505 2,636 2,639 Gross Profit 1,243 (52.0%) 1,376 (53.3%) 1,395 (55.7%) 1,451 (55.1%) 1,385 (52.5%) SG&A Expenses 737 (30.9%) 748 (29.0%) 732 (29.2%) 777 (29.5%) 818 (31.0%) R&D Expen
Slide 21: SG&A (QoQ)
SG&A (QoQ) (100M JPY) FY23 Q4 FY24 Q1 Q2 Q3 Q4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Salaries & Wages 373 398 384 406 430 Sales Promotion 54 52 47 54 60 Logistics Costs 51 51 59 56 57 Depreciation and 66 70 68 70 71 Amortization Others 192 178 175 190 200 SG&A Expenses Total 737 748 732
Slide 22: SG&A (YoY)
SG&A (YoY) (100M JPY) YoY% FY23 Q4 FY24 Q4 YoY YoY% excluding FY23 Q4 FY24 Q4 YoY YoY% YTD YTD FX impact Salaries & Wages 1,429 1,618 188 13% 9% 373 430 57 15% Sales Promotion 201 213 11 6% 2% 54 60 5 9% Logistics Costs 193 223 30 15% 12% 51 57 6 12% Depreciation and Amortization 250 279 29 12% 7% 6
Slide 23: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (100M JPY) FY23 Q4 YTD FY24 Q4 YTD FY23 Q4 FY24 Q4 Adjusted Operating Profit 1,568 2,034 371 441 Adjustment 1. Amortization of acquired intangible assets -200 -215 -54 -54 Adjustment 2. Non-recurring profit or loss 33 -242 29 -146 Operating Profit 1,401 1,577 3
Slide 24: CAPEX, Depreciation and Amortization, R&D Expenses
CAPEX, Depreciation and Amortization, R&D Expenses (100M JPY) FY25 FY21 FY22 FY23 FY24 Guidance CAPEX 692 758 784 825 950 Depreciation and Amortization 532 635 702 781 830 Amortization of acquired intangible assets 161 188 200 210 200 Others 371 447 502 571 630 CAPEX = Construction in progress recor
Slide 25: Cash Flow (Q4)
Cash Flow (Q4) Operating CF Investing & Financing CF (100M JPY) +665 -572 77 300 260 215 ** 150 Income Working CAPEX taxes, etc. capital *** 162 227 Depreciation Repayment of gains and short-term and losses Others amortization borrowings and commercial Profit before paper tax 2,219 2,126 * Cash at t
Slide 26: Cash Flow (Q4 YTD)
Cash Flow (Q4 YTD) Operating CF Investing & Financing CF +2,108 -1,938 (100M JPY) 513 *** 854 221 Debt Repayment Income Working 825 Issuance of taxes, etc. capital Bonds, Proceeds Depreciation gains and from and losses borrowings ** 1,546 amortization CAPEX 301 1,349 998 Share 356 106 buy-backs Divi
Slide 27: 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 27
Slide 28: Terumo
~“TERUMO