Terumo Corporation · TSE:4543
Terumo — FY2021 Earnings Presentation
29 slides from Terumo's earnings presentation, May 12, 2022
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2022 (FY2021)
Financial Results for the Fiscal Year Ended March 31, 2022 (FY2021) May 12, 2022 Naoki Muto Chief Accounting and Financial Officer 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: Highlights
Highlights FY21 Q4/Q4 YTD results Revenue: Highest-ever quarterly and Q4 YTD revenue driven by solid performance overseas. Demand of infection control products in Japan was normalized Adjusted Operating Profit: 16% profit increase in Q4 YTD, despite the negative effects anticipated at the beginning
Slide 4: P&L Results
P&L Results Revenue: Highest-ever quarterly and Q4 YTD revenue. Cardiac & Vascular demand recovery continued overseas, especially in TIS. Q4 performance was driven by solid performance in TIS and Neurovascular as well as positive FX impact Adjusted Operating Profit: Despite the negative impacts of p
Slide 5: Adjusted Operating Profit Variance Analysis (Q4 YTD)
Adjusted Operating Profit Variance Analysis (Q4 YTD) (100 M JPY) G/P increment by sales increase: The revenue increased in all companies, particularly Cardiac & Vascular, compared Gross with FY20 impacted by COVID margin Gross margin: Price Negative effects of cost inflation (freight, raw -32 materi
Slide 6: Adjusted Operating Profit Variance Analysis (Q4)
Adjusted Operating Profit Variance Analysis (Q4) (100 M JPY) G/P increment by sales increase: Improved recovery level from COVID and sales increase driven by Cardiac & Vascular Gross margin SG&A Gross margin: R&D FX Decrease due to effects of cost inflation Price MDR Others (freight, raw material, a
Slide 7: Revenue by Region
Revenue by Region (C&V: Cardiac & Vascular, TMCS: Medical Care Solutions, TBCT: Blood & Cell Technologies, PS: Pharmaceutical solutions) FY21 FY21 Q4 YTD Revenue (100 M JPY) Comments Q4 YTD YoY% Regional Q4 YTD Q4 () FXN TMCS steady with PS as a driver. C&V growth also continued breakdown with TIS a
Slide 8: C&V: Sales growth in all businesses with continued recovery of procedures
Sales growth in all businesses with continued recovery of number of procedures in US and EU. C&V: Negative effects on 2H profit were mitigated by strong sales and positive FX impact (100 M JPY) Q4 YTD Q4 YTD Q4 Comments Rev. YoY () FXN 3,971 TIS: Continued recovery outside Japan, centered in US and
Slide 9: TMCS: Pumps and infusion sets drove HCS
TMCS: Pumps and infusion sets drove HCS. In 2H, multiple negative factors impacted profit (100 M JPY) Q4 YTD Q4 YTD Q4 Comments Rev. YoY () FXN * HCS: Hospital care solutions (formerly General hospital products + Pharmaceutical) LCS: Life care solutions (formerly DM and consumer healthcare) 1,853 PS
Slide 10: TBCT: Continued demand recovery of whole blood collection
Continued demand recovery of whole blood collection. Although negative impacts TBCT: on profit grew in 2H, maintained improved profit level in YTD (100 M JPY) Q4 YTD Q4 YTD Q4 Comments Rev. YoY () FXN Blood center solutions: Continued recovery of whole blood collection 1,206 in EU and US. Component
Slide 11: FY22 Guidance: Double-digit growth in both revenue and profit
FY22 Guidance: Double-digit growth in both revenue and profit Driven by recovery from the COVID impacts, the growth driver in each company, and positive FX impact Although the cost inflation impact remains, expect some relief at the end of the fiscal year () FXN Amount (100 M JPY) FY21 Actual FY22 G
Slide 12: Adjusted Operating Profit Variance Analysis (FY22 Guidance)
Adjusted Operating Profit Variance Analysis (FY22 Guidance) (100 M JPY) Gross margin GP increment by sales increase: Increase in Price all companies, led by C&V FX Gross margin: Positive impacts from SG&A improved plant utilization and product mix G/P R&D surpass negative impacts from cost inflation
Slide 13: Actions for Profit Improvement
improve OP% 2pts. Actions for Profit Improvement Improvement (OP%) Effectiveness Commenced activities in 4 areas （acceleration in the later years of GS26) FY21 FY22 FY23 FY24 FY25 FY26 Best Practice sharing of manufacturing Consolidate and/or establish US Production Logistics operations towards newl
Slide 14: Dividend Proposal and Acquisition of the Company's Own Shares
Dividend Proposal and Acquisition of the Company’s Own Shares FY21 annual dividend: 34.0 JPY (increased by 2.0 JPY from the guidance) Stably increasing, and aim for the target dividend payout ratio of 30% over the mid- to long-term Continue to increase FY22 annual dividend up to 36.0 JPY FY21 Result
Slide 15: FY21-22 Product Pipeline and Topics
FY21-22 Product Pipeline and Topics Major product launches and Indications Business General name Product name Until FY21 FY22 plan FY23 and/or later area Drug-eluting Launch in TIS Ultimaster Nagomi Selling in JP Launch in EU coronary stent Asia & Latin America Neuro- Flow diverter FRED X Selling in
Slide 16: Reference
Reference ©TERUMO CORPORATION 16 / 28
Slide 17: Revenue by Segment and Region
Revenue by Segment and Region ©TERUMO CORPORATION 17 / 28
Slide 18: Quarterly Trend of Revenue and Operating Profit
Quarterly Trend of Revenue and Operating Profit Revenue: Increase by +9% YoY. +13% overall growth against FY19 Q4, driven by +18% increase in C&V with positive impact of FX such as EUR Operating Profit: The negative GP impact from cost inflation, lower production level, and VBP in China partially mi
Slide 19: P&L (Quarterly Results)
P&L (Quarterly Results) (100 M JPY) FY20 Q4 FY21 Q1 Q2 Q3 Q4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Revenue 1,652 1,717 1,729 1,788 1,798 Gross Profit 854 (51.7%) 943 (54.9%) 920 (53.2%) 926 (51.8%) 905 (50.3%) SG&A Expenses 488 (29.5%) 465 (27.1%) 490 (28.4%) 507 (28.4%) 528 (29.4%) R&D
Slide 20: Operating Expenses (Quarterly Results)
Operating Expenses (Quarterly Results) (100 M JPY) FY20 Q4 FY21 Q1 Q2 Q3 Q4 (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Salaries & Wages 240 249 249 255 256 Sales Promotion 43 30 40 44 45 Logistical Costs 37 38 39 39 41 Depreciation & Amortization 49 48 50 51 54 Others 119 99 112 118 132 SG&A
Slide 21: Operating Expenses (YTD and Quarterly Results)
Operating Expenses (YTD and Quarterly Results) (100 M JPY) FY20 Q4 FY21 Q4 YoY% YoY YoY% FY20 Q4 FY21 Q4 YoY YoY% YTD YTD (FXN) Salaries & Wages 928 1,010 82 9% 4% 240 256 16 7% Sales Promotion 128 160 31 24% 20% 43 45 2 6% Logistical Costs 144 157 14 10% 6% 37 41 4 10% Depreciation & Amortization 1
Slide 22: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (100 M JPY) FY20 Q4 YTD FY21 Q4 YTD FY20 Q4 FY21 Q4 Operating Profit 984 1,160 231 215 Adjustment 1. Amortization of acquired intangible assets 146 161 38 42 Adjustment 2. Non-recurring profit or loss 29 24 5 16 Adjusted Operating Profit 1,159 1,344 274 273 <Ge
Slide 23: CAPEX, Depreciation and R&D Expenses
CAPEX, Depreciation and R&D Expenses (100 M JPY) FY22 FY18 FY19 FY20 FY21 Guidance CAPEX 608 895 772 692 900 Depreciation 440 477 484 532 635 Amortization of acquired intangible assets 146 157 146 161 173 Others 294 320 338 371 462 CAPEX = C.i.P. record basis, lease depreciation (IFRS16) is not incl
Slide 24: Cash Flows (Q4 YTD)
Cash Flows (Q4 YTD) (100 M JPY) Operating CF Investing & Financing CF +1,415 -1,370 305 14 589 Income taxes Working Depreciation capital 692 and amortization 1,145 CAPEX 407 Debt 235 36 repayment Dividends Others Profit & before tax redemption 2,008 of bonds 2,053 Cash at CAPEX = C.i.P. record basis
Slide 25: Cash Flows (Q4)
Cash Flows (Q4) (100 M JPY) Operating CF Investing & Financing CF +431 -428 30 91 156 200 Income Working Depreciation taxes capital 215 CAPEX and 299 amortization 72 Profit before tax Debt Others repayment 2,053 2,049 Cash at CAPEX = C.i.P. record basis Cash at the end of Cash at the end of each per
Slide 26: FY21 FX Impact Breakdown (Flow and Stock)
FY21 FX Impact Breakdown (Flow and Stock) +7.1 B JPY FX impact vs FY20: No change from +7.1 B JPY Q3 YTD level +8.7 B JPY for year (+1.8 B JPY in Q4) from flow: Positive impact of JPY depreciated against EUR and CNY (JPY) FY20 average FY21 average Variance EUR 124 131 7 CNY 15.7 17.5 2 -1.6 B JPY fo
Slide 27: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (100 M JPY) USD EUR CNY Revenue 17 8 35 Adjusted Operating Profit 0 5 15 <Reference> Impact when JPY is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating Profit -1 10 65 13 23 36 ©TERUMO
Slide 28: Adjusted Operating Profit Variance Analysis (Q3 YTD)
Adjusted Operating Profit Variance Analysis (Q3 YTD) (100 M JPY) G/P increment by sales increase: The revenue increased in all companies, Gross particularly Cardiac & Vascular, compared margin with FY20 Q3 YTD impacted by COVID-19 Price -27 Gross margin: JP NHI Negative effects of cost inflation (fr
Slide 29: Terumo
~“TERUMO