Terumo Corporation · TSE:4543
Terumo — Investor Presentation (May 2023)
20 slides from Terumo's investor presentation, May 15, 2023
Slide 1: Verification of GS26 Goals Roadmap
Verification of GS26 Goals Roadmap May 15, 2023 Shinjiro Sato President and CEO Terumo Corporation
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for 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 even
Slide 3: 5-Year Financial Targets (FY22 to FY26)
5-Year Financial Targets (FY22 to FY26) Growth Profitability Capital efficiency Revenue Operating ROIC Growth Profit % High 20%+ 10%+ single-digit (Before adjustment, achieve in 5 years) (achieve in 5 years) Maintain ROE 10% or more (5-Year CAGR) Aiming for revenue of 1 trillion yen through continue
Slide 4: Awareness of Current Environment
Awareness of Current Environment Anticipated Unanticipated Unanticipated Anticipated Demand Inflation FX fluctuation Strategy fundamentals Healthy overall Raw materials, Profit pressure from Steady execution of No major change transport, energy cost import price increases initial year plan increases
Slide 5: Confirming Growth Prospects
Confirming Growth Prospects Main growth drivers Sales trend Therapeutic device expansion C&V Expand radial target areas +9% TMCS CDMO pipeline expansion +5% TBCT PI +11% FY21 FY22 FY23 FY26 Avg. Group +9% 5-year growth goal on track Total High single digits ©TERUMO CORPORATION 5 / 19
Slide 6: C&V growth potential for GS26 achievement
C&V growth potential for GS26 achievement GS26 Group-wide revenue Growth drivers (vs FY21) CAGR: ** C&V therapy 800 High single-digit +3,000億円 Terumo Corp. * Access 650 C&V High single-digit TBCT innovations ~600 TMCS Middle single-digit Alliance 350 TBCT Near double-digit Diabetes 80 FY21 FY26 Pote
Slide 7: New Measures to Raise Corporate Value
New Measures to Raise Corporate Value More assertive growth strategy More assertive M&A promotion Focus areas: While maintaining multidirectional perspective, focus on areas such as Vein , CDMO and Diabetes Accelerate profitability improvement Continue worldwide price policy review in FY23 Get VC2 r
Slide 8: Roadmap to Earnings Improvements
Roadmap to Earnings Improvements GS26 achievement scenario FY22 to GS26 Margin Trend Business mix improvement and 1 revenue expansion of high-profit businesses Achieve profitability in TBCT PI business 20% Product/ Expand CDMO business business mix 3 improvement Group Adjustments to product po
Slide 9: Production transfer to Costa Rica gets results from FY2023
Production transfer to Costa Rica gets results from FY2023 MicroVention came first, other Terumo companies followed First entry into Costa Rica MicroVention TBCT TCV 3rd Factory MicroVention 2nd Factory MicroVention 1st Factory Neurovascular Transfusion, infusion, Oxygenator blood circuit treatment
Slide 10: VC2 Actions and Expected Effects
VC2 Actions and Expected Effects FY22 results / ongoing actions FY22 FY23 FY24 FY25 FY26 Domestic focused Global cost optimization 20B JPY+ Procurement direct/indirect materials cost Procurement compliance 200.0 optimization enhancements Completion of NA optimizations Optimizations across
Slide 11: TMCS Profitability Improvement Plan
TMCS Profitability Improvement Plan Achievement scenario FY23 to GS26 Margin Trend 1 Business mix improvement, and portfolio transformation Accelerate PS business growth, CDMO pipeline expansion 3 15% Business/product mix improvement, and more assertive M&A 2 Take actions to unprofitable busin
Slide 12: TBCT Profitability Improvement Plan
TBCT Profitability Improvement Plan Achievement scenario FY23 to GS26 Margin Trend 1 Recover from one-time costs 20% 3 PI: Higher fix-cost burden due to volume shortfall Blood center business： stabilization of supply chains 2 2 Expansion of PI business Exceptional reviews from clients and dono
Slide 13: ~“TERUMO
~“TERUMO
Slide 14: Blood and Cell Technologies' core business returned to growth
Blood and Cell Technologies’ core business returned to growth Demonstrating a strong value proposition amidst global supply chain challenges Plasma Innovations positioned to capture the value of investments in source plasma industry Infrastructure positioned for high-quality growth Continuing Li
Slide 15: Proven Innovation Advancing Source Plasma Industry
Proven Innovation Advancing Source Plasma Industry Rika Kinari Plasma Donation System Device Management Platform Integrated Supply Myata Chain and Distribution Customer Service Portal FDA cleared in 2022 State-of-the-Art Training & Simulation Automated Modules Manufacturing ©TERUMO CORPORATION 15 /
Slide 16: Our Digital Ecosystem and the Impact to Customers
Our Digital Ecosystem and the Impact to Customers The Digital Ecosystem Benefits to Terumo BCT: Optimizes processes for efficient utilization of resources resulting in a leaner Plasma Innovations organization Kinari Device Management Platform Electronic software distribution Predictive analytics
Slide 17: Appendix
Appendix ©TERUMO CORPORATION 17 / 19
Slide 18: TMCS Profitability Improvement Plan
TMCS Profitability Improvement Plan 1 Business mix improvement, and portfolio transformation Accelerate PS business growth, CDMO pipeline expansion 3 Business/product mix improvement, and 2 1 more assertive M&A Take actions to unprofitable businesses & products 2 Price policy revision Price
Slide 19: TBCT Profitability Improvement Plan
TBCT Profitability Improvement Plan 1 Recover from one-time costs PI: Higher fix-cost burden due to volume shortfall 3 Blood center business： stabilization of supply chains 2 2 Expansion of PI business PI Exceptional reviews from clients and donors core 1 Improved profitability from further
Slide 20: ~“TERUMO
~“TERUMO