Terumo Corporation · TSE:4543
Terumo — Q3 FYE March 2011 Earnings Presentation
21 slides from Terumo's earnings presentation, Jan 27, 2011
Slide 1: Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2011
Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2011 January 27, 2011 TERUMO Corporation
Slide 2: Agenda
Agenda -Financial Results -Financial Results -Net Sales (By Region) -Net Sales (By Business Segment) -Points on Net Sales -Gross Profit Rate Variance Analysis -SG&A Expenses -Forecast & Progress for the Full-Year Results of FYE Mar. 2011 -The Third Quarter Topics 1. Intravascular Imaging Business 2.
Slide 3: Financial Results (Consolidated)
Financial Results (Consolidated) (Unit: Billions of yen) Q3 YTD Q3 YTD Constant YoY Currency Mar.2010 Mar.2011 Net Sales 238.9 244.2 2% 7% Gross Profit 126.1 (52.8%) 127.2 (52.1%) 1% 7% SG&A Expenses 76.1(31.9%) 79.1 (32.4%) 4% 8% Operating Income 50.0(20.9%) 48.1 (19.7%) -4% 4% Ordinary Income 50.4
Slide 4: Net Sales (by Region)
Net Sales (by Region) (Unit: Billions of yen) Consolidated ：+2% (+7%) Q3 YTD Q3 YTD Mar. 2010 Mar. 2011 ( ): Constant currency Japan Overseas +1% +4% -2% 42.0 (+15%) Europe (+14%) 41.1 +6% 39.8 Americas (+14%) 42.0 133.1 133.9 105.8 110.3 China +23% 5.7 (+33%) 7.0 Asia & +11% 18.2 Others (+15%) 20.2
Slide 5: Net Sales (by Business Segment)
Net Sales (by Business Segment) (Unit: Billions of yen) +1% +5% Q3 YTD Q3 YTD (+3%) (+14%) Mar. 2010 Mar. 2011 ( ): Constant currency +3% (+9%) 114.5 115.7 101.3 106.8 -35% (-34%) 17.9 18.4 5.1 3.3 General Cardiac & Blood Consumer Hospital Vascular Transfusion Healthcare 2011/1/27 Terumo Corporation
Slide 6: Points on Net Sales
Points on Net Sales -Overseas %:YoY -Interventional systems achieved double-digit growth in all regions (constant currency basis). Europe 23%, Americas 22%, China 42%, Asia & others 32% growth. -Drug eluting stent ”Nobori” 122% growth -TRI related products* in U.S. tripled *Mainly used for the proce
Slide 7: Gross Profit Rate Variance Analysis
Gross Profit Rate Variance Analysis 55% Reimbursement price decline 0.4 0.9 54% 0.3 Volume Cost increase 1.2 0.7 reduction 53% Price 0.6 decline Shift to higher Foreign 0.3 52% profitable products exchange Others 52.8% 51% 52.1% 50% Average exchange rate Q3YTD Q3YTD Q3 YTD Mar. 2010 Mar. 2011 Q3 YTD
Slide 8: SG&A Expenses
SG&A Expenses (Unit: Billions of yen) Q3 YTD Mar. 2010 Q3 YTD Mar. 2011 Changes YoY Salaries & Wages 28.5 28.8 +0.3 +1% Sales Promotion 8.0 7.7 -0.3 -4% Logistical Costs 6.7 7.2 +0.5 +7% Depreciation & 3.8 3.4 -0.4 -10% Amortization Others 16.5 17.5 +1.0 +7% General 63.5 (26.6%) 64.6 (26.5%) +1.1 +2
Slide 9: Forecast and Progress for the Full-Year Results FYE Mar. 2011
Forecast and Progress for the Full-Year of Results FYE Mar. 2011 -Forecast for this fiscal year is on hold. (Unit: Billions of yen) Mar.2011 Q3 YTD Full-Year Changes Results／Progress Forecast Net Sales 326.0 244.2 75% 81.8 Operating Income 63.3 (19.4%) 48.1 76% 15.2 Ordinary Income 57.2 (17.5%) 42.9
Slide 10: The Third Quarter Topics
The Third Quarter Topics 1. Intravascular Imaging Business 2. TRI in U.S. 3. Chronic Care Market – Semi-Solid Nutritious Food 2011/1/27 Terumo Corporation 10/21
Slide 11: Promoting Safe & Efficient Interventional Treatment
1.Intravascular imaging business Promoting Safe & Efficient Interventional Treatment -Monitoring the cross-section of the blood vessel -Selecting a stent, checking the fitting ability -Categorizing with the types of signals -Ultrasound……IVUS -Possible to look deep into the blood vessel wall, but poo
Slide 12: IVUS in Japan: Continuous Improvement Enhances the Market Evaluation
1. Intravascular imaging business IVUS in Japan：Continuous Improvement Enhances the Market Evaluation -Vivid imaging display and analysis made possible -Improvement of deliverability and procedure efficiency of IVUS catheters (Billions of yen) Forecast of IVUS sales in Japan 40% 5.0 Terumo share 20%
Slide 13: Promising Spread of TRI in U.S.
2．Promising Spread of TRI in U.S. -TRI procedure increasing from 3% to 8% out of PCI. Holding symposiums in Net sales of TRI related academic meetings (US$Mil.) products in the U.S. 15 63% G R 10 CA 5 0 1st Half 2H 1H 2H Mar. 2010 Mar. 2011 (Forecast) 2011/1/27 Terumo Corporation 13/21
Slide 14: Chronic Care Market: Tube Feeding Scene
3．Chronic care market Tube Feeding Scene The process follows the tube feeding (bottle and tube used) Prepare Infuse Wash /Sterilize -Challenges of liquid nutritious food for tube feeding -Aspiration pneumonia by back flow of liquid food from the stomach and the gullet -Elderly and bedridden people h
Slide 15: Semi-Solid Nutritious Food: Aiming 6 billion yen sales for FYE Mar. 2014
3．Chronic care market Elderly Healthcare Originated from Japan, Semi-Solid Nutritious Food -Characteristics of Terumo’s Products -Semi-solid to prevent backflow ÆReduces the risk of aspiration pneumonia -No container nor equipment required, washing nor sterilization necessary ÆReduces operation time
Slide 16: Reference
Reference @TERUMG
Slide 17: Financial Results (three months)
Financial Results (three months) (Unit: Billions of yen) Q3 Q3 YoY Mar. 2010 Mar. 2011 Net Sales 80.8 80.3 -1 % Gross Profit 42.8(52.9%) 41.6 (51.7%) -3 % SG&A Expenses 25.4(31.3%) 26.2 (32.5%) 3% Operating Income 17.4(21.6%) 15.4 (19.2%) -12 % Ordinary Income 18.1(22.4%) 14.7 (18.3%) -19 % Net Inco
Slide 18: Income for the Q3 FYE Mar. 2011: To the Forecast for the 2nd Half
Income for the Q3 FYE Mar. 2011: To the Forecast for the 2nd Half (Unit: Billions of yen) 2H Q3 Progress Impact of Forecast (Three months) Rates Foreign Exchange Net Sales 162.1 80.3 50% +0.6 (Upper the progress rate by 0.4%) Operating Income 30.6 (18.9%) 15.4(19.2%) 50% +0.2 (Upper the progress rat
Slide 19: Gross Profit, SG&A, Operating Income Rates
Gross Profit, SG&A, Operating Income Rates Gross Profit (%) 52.9 52.2 52.1 52.3 51.7 SG&A 35.0 31.3 32.5 32.0 32.5 Operating Income 21.6 19.6 20.3 17.2 19.2 Q3 Q4 Q1 Q2 Q3 Mar. 2010 Mar. 2011 (Unit: Quarterly three months) 2011/1/27 Terumo Corporation 19/21
Slide 20: Changes of Quarterly Average Exchange Rates
Changes of Quarterly Average Exchange Rates Yen 140 EUR (Mar. 2010) EUR (Mar. 2011) 120 117 US$ (Mar. 2010) 111 112 100 92 US$ (Mar. 2011) 86 80 83 Q1 Q2 Q3 Q4 (Average exchange rates for the quarterly three months) 2011/1/27 Terumo Corporation 20/21
Slide 21: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: [email protected] Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo