Terumo Corporation · TSE:4543
Terumo — Q1 FY2016 Earnings Presentation
24 slides from Terumo's earnings presentation, Aug 4, 2016
Slide 1: Financial Results for the First Quarter of Fiscal Year Ending March 31, 2017
Financial Fi i lR Results l ffor the h Fi First Q Quarter off Fiscal Year Ending March 31, 31 2017 (FY2016) Terumo Corporation Managing Executive Officer Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake August g 4,, 2016
Slide 2: Overview: Achieved 10% Growth in Operating Income despite FX Impact
Overview: Achieved 10% Growth in Operating Income despite FX Impact (billion yen) FY2015 Q1 FY2016 Q1 YoY% YoY% (Excl. FX) Net Sales 128.7 124.5 ‐3% +5% Gross Profit 69.0 (53.7%) 69.8 (56.0%) +1% +11% SG&A expenses 41 7 (32.5%) 41.7 (32 5%) 40 3 (32.3%) 40.3 (32 3%) ‐3% 3% +6% R&D Expenses 7.9 ( 6.1
Slide 3: Extraordinary Gains & Losses, Income Taxes
Extraordinary Gains & Losses, Income Taxes (billion yen) FY2015 FY2016 Q1 Q1 FX FY15Q1 +1.8 +1 8 Non‐operating Income and loss 1.1 ‐6.2 FY16Q1 ‐5.5 O di Ordinary Income I 20 6 20.6 15 1 15.1 Y Y% ‐27% YoY%: 27% Extraordinary +0 0 +0.0 ‐0.0 00 Gains & Losses Income before Income Tax 20.6 15.1 YoY%: ‐
Slide 4: Operating Income Variance Analysis
Operating Income Variance Analysis (billion yen) 0.6 08 0.8 Business Price 1.4 mix erosion 3.9 JP 2.4 improve‐ (FY15Q1: reimburse‐ ment 2.1) 0.8 G/P ment SG&A p improve‐ revision increase Increase off R&D 23 2.3 4.7 ment by due to cost sales force FX reduction, p expansion G/P / etc in US TIS increm
Slide 5: Profit Improvement through Marketing Activities
Profit Improvement through Marketing Activities Cardiac and Vascular: Increase profit by Ultimaster sales expansion +1.5 BJPY Improve profitability by the sales shifting from Nobori to Ultimaster sold at a premium price Europe: Focus on highly profitable market Cardiac and Vascular: Increase
Slide 6: Operating Income Variance Analysis
Operating Income Variance Analysis Cardiac and General Blood Vascular Hospital Management (billion yen) 1.9 0.1 0.4 Increase Decrease in SG&A in G/P Increase 1.8 0.6 1.0 10.2 in SG&A Decrease I Increase Others in G/P 2.3 in SG&A FX G/P increment © Terumo Corporation 2015/8/4 6/24
Slide 7: Net Sales by Region
Net Sales by Region FY16 Q1 FY15 Q1 Net Sales Year‐on‐Year Sales Comparison p 100%＝124.5 BJPY billion yen YoY% Comments ( ) Excl. FX Despite the impact of reimbursement price cut in Japan, TIS and neurovascular drove an overall growth 37% Japan 3% Double D bl digit di it growthth for f Cardiac C di
Slide 8: Net Sales by Business Segment
Net Sales by Business Segment FY16 Q1 FY15 Q1 Net Sales Year‐on‐Year Sales Comparison p 100%＝124.5 BJPY billion yen YoY% Comments ( ) Excl. FX Global sales of coronary therapeutic devices and access devices drove overall growth. Cardiac and 1% In Japan, achieved double digit 51% Vascular (12%) growt
Slide 9: Cardiac and Vascular: Double Digit Growth in Profit despite Negative Impact of FX
Cardiac and : Double Digit Growth in Profit despite the Negative Impact of FX Vascular and Reimbursement Price Cut in Japan (billion yen) FY2015 FY2016 YoY% Major Topics Impact Q1 Q Q1 Q ( ) Excl. FX Negative impact of FX ‐6.9 63.2 63.7 Japan: Sales of coronary therapeutic Sales 1% devices ggrew des
Slide 10: General Hospital: Maintain Steady Profitability despite Decrease in Sales
General : Reimbursement Maintain Steady Profitability despite Decrease in Sales Due to Price Cut in Japan and Downsizing of Low Profit Hospital Businesses (billion yen) FY2015 FY2016 Major Topics Impact YoY% Q1 Q1 ( ) Excl. FX Negative Impact of FX ‐1.2 Overseas: Downsizing of low profit businesses
Slide 11: Blood Management: Decrease in Sales and Profit
Blood : Decrease Both in Sales and Profit Due to Negative Impact Management of FX and Price Decline Overseas (billi yen)) (billion FY2015 FY2016 YoY% Major Topics Impact Q1 Q1 ( ) Excl. FX Negative impact of FX ‐2 2.8 8 Sales ‐14% 26 0 26.0 22 4 22.4 ( 3%) (‐3%) Price declines for Blood Center ‐0.6
Slide 12: Major Topics
Major Topics Issued 30 BJPY of straight bond at the lowest interest rate ever (Apr) Vascutek won Queen’s Award for Enterprise in the Innovation category (May) Corporate Exhibited “Heart Sheet” at Ise‐Shima Summit (May) Announcement on the acquisition of U.S.‐based Sequent Medical for new neurova
Slide 13: New Products Pipeline in FY2016
New Products Pipeline in FY2016 Category Products Region Launch Category Products Region DES (Ultimaster) ◎★ France Launched Disposable Centrifugal Pump CV Asia (for PCPS) Coronary DES (Ultimaster) Regenerative ◎★ JP HeartSheet ★ JP Launched 4 0mm (Diameter) 4.0mm Medicine Imaging IVUS ◎★ JP Intrade
Slide 14: Impact of FX onto Sales and Operating Income
Impact of FX onto Sales and Operating Income (billion yen) Fluctuation of FX (yen) Impact on Impact on Currency FY15Q1～FY16 Guidance Sales Operating FY15Q1 Q2 Q3 Q4 Income FY16 USD Guidance If JPY Appreciated ‐9.8 98 +1.6 16 110 100 FY16 Guidance If JPY EUR 125 Appreciated ‐8.1 ‐4.7 110 FY16 If JPY
Slide 15: Impact of FX in FY2016: Non-operating FX Losses and Countermeasures
Impact of FX in FY2016: Non‐operating FX Losses and Terumo’s Countermeasures Non‐operating FX losses due to JPY Appreciation (‐5.5 BJPY) USD End of FY15: 113.0 JPY → End of FY16Q1: 103.0 JPY ‐4.6 BJPY CNY End of FY15: 17.4 JPY → End of FY16Q1: 15.5 JPY ‐0.5 BJPY EUR E d off FY15: End FY15 12
Slide 16: The Acquisition of Sequent Medical, Inc.
The Acqusition of Sequent Medical, Inc. The “WEB” New Neurovascular Impact on FY16 Guidance (tentative) A Aneurysm EEmbolization b li i SSystem (billion yen) Impact p Sales + 0.8 Operating Income ‐ 3.6 N t Income Net I ‐ 4.3 43 Purchasing price: 40 BJPY at maximum Consolidation to be in Aug. FY
Slide 17: Reference
Reference ~TERUMO 17/24
Slide 18: FY16Q1 Net Sales and Growth by Region
FY16Q1 Net Sales and Growth by Region (billi yen)) (billion Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac and 12.8 50.9 16.7 21.4 6.8 6.0 63.7 Vascular (+13%) (+11%) (+10%) (+11%) (+13%) (+16%) (+12%) Out of C&V 9.9 40.9 13.6 15.9 6.4 5.0 50.8 Intervent
Slide 19: Operating Expenses
Operating Expenses (billion yen) FY2015 Q1 FY2016 Q1 YoY YoY% YoY% (Excl FX) (Excl. Salaries & Wages 19.1 18.1 ‐1.0 ‐ 5% +5% S l Promotion Sales i 41 4.1 38 3.8 ‐0.3 03 ‐ 6% +3% 3% Logistical Costs 2.8 2.8 +0.0 + 0% +5% Depreciation & 6.9 6.2 ‐0.7 ‐10% +0% Amortization Others 8.8 9.4 +0.6 + 5% +13%
Slide 20: Quarterly Results
Quarterly Results (billion yen) FY15 Q1 Q2 Q3 Q4 FY16Q1 (Apr‐Jun) (Jul‐Sep) (Oct‐Dec) (Jan‐Mar) (Apr‐Jun) Net Sales 128.7 130.5 136.8 129.0 124.5 Gross Profit 69.0 (53.7%) 70.4 (53.9%) 75.3 (55.0%) 70.3 (54.4%) 69.8 (56.0%) SG&A Expenses 41.7 (32.5%) 42.7 (32.7%) 42.9 (31.3%) 42.8 (33.1%) 40.3 (32.3
Slide 21: CAPEX and R&D Expenses
CAPEX and R&D Expenses Amortization (billion Yen) of Intangibles and Goodwill CAPEX was peaked out in FY2013 17.7 18.5 16.3 20.2 CAPEX is projected to be at the same 4.6 level as depreciation 23.6 23.0 24.5 6.1 25.5 and amortization CAPEX: CIP basis CAPEX Depreciation Further promote R&D activit
Slide 22: Cash Flow
Cash Flow Operating CF Investing and Financing CF +10.4 + 6.9 (billion yen) 7.3 8.1 Dividends 6.1 10.7 30.0 Corpo‐ C CAPEX Depreci‐ rate Tax 7.3 9.7 ation & Amorti‐ 15.1 zation Increase Issuance of Others in Straight Bond Working Capital Income 167.0* before 149.7* Tax Cash at end * Cash at end of f
Slide 23: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity (billion yen) USD EUR E l A Excl. Amortization i i I l Amortization Incl. A i i Net Sales 14 1.4 14 1.4 05 0.5 Operating Income 0.0 ‐0.2 0.3 23/24
Slide 24: IR Contact
IR Contact Terumo Corporation p Corporate Communication (IR) Dept. E‐mail: [email protected] kouhou terumo01@terumo co jp Among the information that Terumo discloses, the forward‐looking statements including financial projections are based upon our assumptions using information available