Terumo Corporation · TSE:4543

Terumo — Q1 FY2014 Earnings Presentation

20 slides from Terumo's earnings presentation, Aug 1, 2013

  1. Slide 1: Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2014

    Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2014 Terumo Corporation August 1, 2013

  2. Slide 2: Consolidated Q1 Results

    Consolidated Q1 Results (billion of yen) Q1 Mar. 2013 Q1 Mar. 2014 YoY% Net Sales 95.9 111.1 +16% Gross Profit 51.7 (53.9%) 57.0 (51.3%) +10% SG&A Expenses 30.2 (31.5%) 36.1 (32.4%) +19% R&D Expenses 6.0 ( 6.3%) 7.6 ( 6.9%) +27% Operating Income 15.5 (16.1%) 13.3 (12.0%) -14% (Excl. Amortization *)

  3. Slide 3: Net Sales (by Region)

    Net Sales (by Region) (billion of yen) Consolidated: +17% (+4%) ＊ Q1 Q1 Mar. 2013 Mar. 2014 ( ) Excluding Foreign Exchange ＊ Excluding Home Therapy Japan Outside of Japan +2% ＊ +30% +29% 17.7 Europe (+3%) (+5%) 22.9 +29% 20.5 Americas (+5%) 26.5 44.7＊ 45.7 50.4 65.4 4.2 +28% China (+4%) 5.3 +35% 8.0

  4. Slide 4: Net Sales (by Business Segment)

    Net Sales (by Business Segment) (billion of yen) Q1 Q1 +5% ＊ +22% Mar. 2013 Mar. 2014 (+1%) (+4%) ( ) Excluding Foreign Exchange ＊ Excluding Home Therapy +29% (+8%) 37.4 ＊ 39.4 41.1 50.1 16.6 21.5 General Cardiac & Blood Hospital Vascular Management 2013/8/1 ©Terumo Corporation 4/20

  5. Slide 5: Q1 Mar. 2014 Net Sales and Growth by Region

    Q1 Mar. 2014 Net Sales and Growth by Region (billion of yen) Outside Business Japan of Japan Asia & G. Total Segment Total Europe Americas China Others General 30.7 8.7 2.7 2.1 0.3 3.7 39.4 Hospital (1%) (2%) (-7%) ( 4%) (-23%) (10%) (1%) Cardiac & 12.1 38.0 14.3 15.4 4.3 4.1 50.1 Vascular ( 3%) ( 5

  6. Slide 6: SG&A Expenses

    SG&A Expenses (billion of yen) Q1 Mar. 2013 Q1 Mar. 2014 YoY YoY% Salaries & Wages 12.7 15.4 +2.7 +22% Sales Promotion 2.9 3.7 +0.8 +29% Logistical Costs 2.5 2.7 +0.2 +8% Depreciation & Amortization 4.4 5.3 +0.9 +22% Others 7.7 9.0 +1.3 +14% General Administrative Total 30.2 (31.5%) 36.1 (32.4%) +5.

  7. Slide 7: SG&A Expenses (Excluding Foreign Exchange)

    SG&A Expenses (Excluding Foreign Exchange) (billion of yen) Q1 Mar. 2013 Q1 Mar. 2014 YoY YoY% Adjusted w/ current FX rate General 34.7 36.1 +1.4 + 5% Administrative Total R&D Expenses 6.7 7.6 +0.9 +15% SG&A Expenses Total 41.4 43.7 +2.3 + 6% Enhance sales force in U.S. and Latin America Salaries &

  8. Slide 8: Operating Income Variance Analysis

    Operating Income Variance Analysis 2.0 (billion of yen) 1.9 G/P Lowered 1.0 increment plant by sales productivity Price 0.4 3.0 increase erosion Device 1.4 tax in US Effect of FX temporary factors 2.3 occurred in Q1/FY12 Increase (inventory re- in SG&A 15.5 evaluation,etc) expenses 13.3 Q1 Q1 Mar. 2

  9. Slide 9: Q1 Is in Line. Toward Operating Income of 30 BJPY in 1H

    Q1 Is in Line. Toward Operating Income of 30 BJPY in 1H (billion of yen) Operating Income +3.4 16.7 13.3 Q1 Mar. 2014 Q2 Mar. 1332014 Result Forecast Factors to increase Q2 operating income Increase due to sales expansion 2.1 BJPY •Sales expansion of products including new products (Neuro, Periphe

  10. Slide 10: Progress within Product Development Pipeline

    Progress within Product Development Pipeline Segment Product FY13 Q1 Q2 Stent (above the knee/SFA) ○ Peripheral Balloon (below the knee) Stent (below the knee) Coil Assist Stent Neuro Flow-diverting Stent ○ Occlusion Balloon ○ New PTCA Balloon Catheter ○ Coronary OFDI (Intravascular imaging system)

  11. Slide 11: Progress within Product Development Pipeline

    Progress within Product Development Pipeline Segment Product FY13 Q1 Q2 Automated blood component processing system (PRP method) ○ Automated blood component processing system (BC method) ○ Blood Automated blood component collection Management system (plasma application) Data management system (TACSI

  12. Slide 12: Reference

    Reference 2013/8/1 ©Terumo Corporation 12/20

  13. Slide 13: Consolidated Results: FY12Q1 thru FY13Q1

    Consolidated Results: FY12Q1 thru FY13Q1 (billion of yen) Q1 Q2 Q3 Q4 Q1 Mar. 2013 Mar. 2013 Mar. 2013 Mar. 2013 Mar. 2014 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Net 95.9 96.0 103.9 106.5 111.1 Sales Gross 51.7 48.8 52.9 52.2 57.0 Profit (53.9%) (50.9%) (50.9%) (49.0%) (51.3%) SG&A 36.2 3

  14. Slide 14: Gross Profit Variance Analysis

    Gross Profit Variance Analysis (%) 1.8 2.2 FX Lowered 0.4 Price 0.3 plant erosion Device productivity tax in US 1.5 53.9% Effect of temporary factors occurred in 51.3% Q1/FY12 (inventory re- Q1 evaluation,etc) Q1 Mar. 2013 Mar. 2014 2013/8/1 ©Terumo Corporation 14/20

  15. Slide 15: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (billion of yen) Mar. 2013 Mar. 2014 Q1 Mar. 2014 Result Forecast Result CAPEX * 32.2 45.0 10.4 (23%) Depreciation & 32.6 37.0 9.3 (25%) Amortization * R&D Expenses 27.1 30.0 7.6 (25%) * Including intangibles %: Progress to forecast CAPEX: acquisition basis 2013/8/1 ©Terumo Corpo

  16. Slide 16: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (billion of yen / year) US$ EUR Net Sales 1.7 0.7 Operating Income 0.2 0.4 2013/8/1 ©Terumo Corporation 16/20

  17. Slide 17: Cash Flow

    Cash Flow  Cash usage in good balance (Capital investment for sustainable growth, repayment of debt, and dividend) (billion of yen) in out Others Depreciation 4.1 & Amortization 9.3 Capital Investment 10.4 Net Income 9.0 Dividend 3.8 Total 18.3 Total 18.3 2013/8/1 ©Terumo Corporation 17/20

  18. Slide 18: Gross Profit, SG&A Expenses, Operating Income

    Gross Profit, SG&A Expenses, Operating Income (%) Gross Profit 53.9 50.9 50.9 49.0 51.3 SG&A Expenses 37.8 37.6 37.0 39.1 39.3 Operating 9.9 12.0 Income 16.1 13.3 13.9 Q1 Q2 Q3 Q4 Q1 Mar. 2013 Mar. 2014 (Quarterly: 3 months) 2013/8/1 ©Terumo Corporation 18/20

  19. Slide 19: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates 129 130 EUR (Mar. 2014) 122 105 110 103 EUR (Mar. 2013) 98 99 US$ (Mar. 2014) 90 80 92 US$ (Mar. 2013) 79 81 70 Ｑ１ Ｑ２ Ｑ３ Ｑ４ (Quarterly: 3 months) 2013/8/1 ©Terumo Corporation 19/20

  20. Slide 20: IR Contact

    IR Contact Terumo Corporation Corporate Communication (IR) Dept. E-mail: [email protected] 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 i

Terumo — Q1 FY2014 Earnings Presentation on 6ix