Terumo Corporation · TSE:4543

Terumo — Q3 FY2020 Earnings Presentation

23 slides from Terumo's earnings presentation, Feb 4, 2021

  1. Slide 1: Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2021 (FY2020)

    Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2021 (FY2020) February 4, 2021 Naoki Muto Chief Accounting and Financial Officer Terumo Corporation

  2. 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

  3. Slide 3: Highest-ever Quarterly Revenue and Adjusted Operating Profit

    Highest-ever Quarterly Revenue and Adjusted Operating Profit (billion JPY) YoY% FY19 Q3YTD FY20 Q3YTD YoY% (FXN) Revenue 470.1 448.6 -5% -3% Gross Profit 258.6 (55.0%) 241.3 (53.8%) -7% -5% SG&A Expenses 136.8 (29.1%) 130.7 (29.1%) -4% -3% R&D Expenses 37.0 ( 7.9%) 35.9 ( 8.0%) -3% -2% Other Income

  4. Slide 4: Adjusted Operating Profit Variance Analysis

    Adjusted Operating Profit Variance Analysis (billion JPY) 6.8 12.2 0.6 G/P 3.0 2.4 decrement R&D Gross 3.5 6.8 FX by sales 1.6 decrease margin decrease Price 98.4 -0.9 MDR SG&A 13.2 2.7 JP -0.8 decrease Reimburse- IT ment invest- 88.5 86.3 -2.6 ment -0.9 75.3 FY19 Q3YTD FY19 Q3YTD FY20 Q3YTD FY20 Q3

  5. Slide 5: Revenue by Region

    Revenue by Region FY20 Q3YTD FY19 Q3YTD Revenue Year-on-Year Revenue Comparison 100% = 448.6 B JPY billion JPY YoY% Comments ( ) FXN Japan: Stronger recovery in C&V quarter by quarter. Positive growth in GH since Q2. TBCT is at previous 148.3 Japan 0% year level 33% 147.8 Europe: Positive growth in

  6. Slide 6: Revenue by Business Segment

    Revenue by Business Segment FY20 Q3YTD FY19 Q3YTD Revenue Year-on-Year Revenue Comparison 100% = 448.6 B JPY billion JPY YoY% Comments ( ) FXN There was a decrease in demand due to postponement of procedures. Cardiac Steady recovery in the performance in 238.4 and -10% Q2 and Q3 Vascular 263.5 (-8%)

  7. Slide 7: Cardiac and Vascular: Progressing Recovery in the Number of Procedures

    Cardiac and Vascular: Progressing Recovery in the Number of Procedures (billion JPY) FY19 FY20 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN TIS: Despite the decreased demand among 263.5 all products, saw a progressing recovery with low single digit negative growth since Q2 -17.4 238.4 Neurovascular:

  8. Slide 8: General Hospital: Exceeded the Impact of Decreased Demand

    General : Exceeded the Impact of Decreased Demand by Solid Hospital Sales of Alliance and Infection Control Products (billion JPY) FY19 FY20 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN General hospital products: The negative impact due to the limited number of medical examinations was mitigated by

  9. Slide 9: Blood and Cell Technologies: Continuous Increase in Both Revenue and Profit

    Blood and Cell Technologies: Continuous Increase in Both Revenue and Profit (billion JPY) FY19 FY20 YoY% Major Topics Impact Q3YTD Q3YTD ( ) FXN Blood center solutions: Driven by increase in collection demand for the COVID-19 78.7 81.0 convalescent plasma therapy as well as +3% software update for c

  10. Slide 10: Key Assumptions of FY20 Q4 Projection

    Key Assumptions of FY20 Q4 Projection Expect a decrease in demand due to COVID-19 resurgence mainly in the US and Europe  Current situation with restart of postponement in procedures in the US and Europe, etc. is negative for the performance  Not expecting the situation to be worsened to the level

  11. Slide 11: Revision of FY20 Guidance

    Revision of FY20 Guidance (billion JPY) Original Revised Change Guidance Guidance in amount Revenue 600.0 600.0 - 90.0 97.5 Operating Profit +7.5 (15.0%) (16.3%) 108.0 115.0 Adjusted Operating Profit +7.0 (18.0%) (19.2%) Profit for the Year 68.0 75.0 +7.0 Average Exchange Rate USD Annual: 106 JPY Q4

  12. Slide 12: Major Topics in FY20 Q3

    Major Topics in FY20 Q3 Corporate Has received “GOOD DESIGN AWARD” for twenty five consecutive years Cardiac and Launched the intrasaccular aneurysm treatment device “WEB” in Japan Intrasaccular aneurysm treatment device Vascular “WEB” Increased production capacity for contract development and manuf

  13. Slide 13: FY20 New Product Pipeline

    FY20 New Product Pipeline Category Products Region Launch Category Products Region Launch Steerable sheath JP Vascular Stent graft for abdominal aortic US Launched graft aneurysm Coronary PTCA balloon (manufactured by Essen China Syringe pump JP Launched Technology) General hospital Safety IV cathet

  14. Slide 14: Reference

    Reference ©TERUMO CORPORATION 14 / 22

  15. Slide 15: FY20 Q3YTD Revenue and Growth by Region

    FY20 Q3YTD Revenue and Growth by Region (billion JPY) Business Overseas Japan Total Segment Subtotal Europe Americas China Asia Cardiac and 36.6 (-4%) 201.8 (-9%) 59.9 (-7%) 91.6 (-8%) 26.8 (-12%) 23.5 (-12%) 238.4 (-8%) Vascular Out of C&V, TIS and 26.3 (-8%) 166.5 (-9%) 48.8 (-7%) 73.6 (-7%) 24.7

  16. Slide 16: Operating Expenses

    Operating Expenses (billion JPY) YoY% FY19 Q3YTD FY20 Q3YTD YoY YoY% (FXN) Salaries & Wages 66.6 68.7 +2.1 +3% +5% Sales Promotion 14.6 8.6 -6.0 -41% -41% Logistical Costs 10.3 10.6 +0.3 +3% +4% Depreciation & Amortization 13.9 14.2 +0.3 +2% +4% Others 31.4 28.5 -2.9 -9% -8% SG&A Expenses Total 136.

  17. Slide 17: Quarterly Results

    Quarterly Results (billion JPY) FY19 Q3 Q4 FY20 Q1 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Revenue 162.9 158.8 131.3 152.0 165.3 Gross Profit 87.2 (53.5%) 85.3 (53.7%) 68.9 (52.5%) 81.6 (53.7%) 90.8 (54.9%) SG&A Expenses 47.2 (29.0%) 47.7 (30.1%) 40.1 (30.5%) 45.8 (30.2%) 44.7 (27.1%

  18. Slide 18: Adjusted Operating Profit: Adjustments

    Adjusted Operating Profit: Adjustments (billion JPY) FY19 Q3YTD FY20 Q3YTD Operating Profit 86.3 75.3 Adjustment 1. Amortization of acquired intangible assets +11.9 +10.8 Adjustment 2. Non-recurring profit or loss +0.3 +2.4 * Adjusted Operating Profit 98.4 88.5 <General examples of adjustment items>

  19. Slide 19: CAPEX, Depreciation and R&D Expenses

    CAPEX, Depreciation and R&D Expenses CAPEX & Depreciation 89.5 (billion JPY) 80.0 Amortization of acquired intangible assets Lease depreciation 60.8 (IFRS16) is not included in 51.7 50.0 FY19, FY20 Q3YTD results 47.7 43.6 42.0 44.0 14.7 and FY20 Guidance 15.7 36.1 15.7 14.5 14.6 Continue investment

  20. Slide 20: Cash Flows

    Cash Flows Operating CF Investing & Financing CF +73.5 -70.6 (billion JPY) 19.2 40.3 Income 22.6 10.0 taxes CAPEX Redemption Depreciation Working of bonds and capital 70.0 40.0 amortization increase 51.7 74.9 Debt repayment 21.1 Long-term Dividends debt 17.8 209.6 Profit Others before tax 166.9 169.

  21. Slide 21: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity Annual impact of 1 JPY depreciation (billion JPY) USD EUR CNY Revenue 1.7 0.8 2.4 Adjusted Operating Profit 0.0 0.5 1.3 <Reference> Impact when JPY is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating Profit -0.1 1.0 6.5 1.

  22. Slide 22: The Status of Convertible Bonds

    The Status of Convertible Bonds Detail of the bonds (issued in Dec. 2014) *After two-for-one stock split implemented in Apr. 2019 Aggregate Conversion Contingent Number of shares Maturity principal amount Coupon Price conversion price required to be issued (billion JPY) (JPY) (JPY) for conversion De

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