Terumo Corporation · TSE:4543
Terumo — FY2018 Earnings Presentation
26 slides from Terumo's earnings presentation, May 9, 2019
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2019 (FY2018)
Financial Results for the Fiscal Year Ended March 31, 2019 (FY2018) Terumo Corporation Managing Executive Officer Kazuaki Kitabatake May 9, 2019
Slide 2: Both Revenue and Profit in Line w/ the Revised Guidance
Both Revenue and Profit in Line w/ the Revised Guidance (billion yen) (億円) YoY% FY17 FY18 YoY% (FXN) Revenue 587.8 599.5 +2% +3% Gross Profit 319.3 (54.3%) 326.5 (54.5%) +2% +4% SG&A Expenses 171.0 (29.1%) 178.7 (29.8%) +4% +5% R&D Expenses 41.3 ( 7.0%) 47.7 ( 8.0%) +15% +15% Other Income and Expens
Slide 3: FY18 Results in Comparison to the Original Guidance
FY18 Results in Comparison to the Original Guidance Revenue Adjusted Operating Profit Comments billion yen Variance billion yen Variance Cardiac FY18 Results 328.5 25% 80.9 Had an impact of shipping and ‐12.5 ‐6.6 delays at Ashitaka factory Vascular FY18 Guidance 341.0 26% 87.5 165.8 16% 26.8 Genera
Slide 4: Adjusted Operating Profit: Adjustments
Adjusted Operating Profit: Adjustments (billion yen) FY17 FY18 Operating profit 108.6 106.6 Adjustment 1. Amortization of acquired +14.5 +14.6 intangible assets Adjustment 2. Temporary gain and loss +1.9 (*) +0.9 Adjusted operating profit 124.9 122.1 (*) FY18 main items of Adjust‐ <Adjustment items>
Slide 5: Adjusted Operating Profit Variance Analysis
Adjusted Operating Profit Variance Analysis 4.0 (billion yen) 6.7 Gross margin Price 14.3 ‐2.5 8.3 JP Reimburse‐ G/P ment Increase of 4.5 2.1 3.7 ‐4.2 SG&A increment Increase Others 16.3 FX by sales of R&D increase 15.5 124.9 122.1 108.6 106.6 FY17 FY17 FY18 FY18 Operating Adjusted Adjusted Operatin
Slide 6: Revenue by Region
Revenue by Region FY18 FY17 売上収益 Revenue Year‐on‐Year Revenue Comparison 100% = 599.5BJPY billion yen YoY% Comments ( ) FXN Negative impact of reimbursement price cut and shipping delays in Cardiac and Vascular Company. 188.5 Good momentum throughout FY18 in General Hospital Japan ‐0% and Blood Mana
Slide 7: Revenue by Business Segment
Revenue by Business Segment FY18 FY17 Revenue Year‐on‐Year Revenue Comparison 100% = 599.5BJPY billion yen YoY% Comments ( ) FXN Cardiac 328.5 Continuous recovery trend with the +1% 55% and normalized shipments 324.0 (+2%) Vascular 165.8 +4% Steady growth throughout the fiscal year. General Continuo
Slide 8: Cardiac and Vascular: Revenue Increase by Overcoming the Shipping Delays
Cardiac and Vascular : Revenue Increase by Overcoming the Shipping Delays (billion yen) FY17 FY18 YoY% Major Topics Impact ( ) FXN TIS: Back to positive growth by overcoming 324.0 328.5 the impacts of JP reimbursement price cut and shipping delays +0.2 Neurovascular: Double digit growth +1% througho
Slide 9: General Hospital: Steady in Profit of All Businesses
General Hospital : Steady in Profit of All Businesses (billion yen) FY17 FY18 YoY% Major Topics Impact ( ) FXN General hospital product: Overall growth driven by pumps and needlefree closed system transfer device along w/ infusion 158.8 165.8 lines in JP +1.4 +4% Pharmaceutical: Good result in I.V.
Slide 10: Blood Management: Back to Positive Profit Growth w/ Steady Revenue
Blood Management: Back to Positive Profit Growth w/ Steady Revenue (billion yen) FY17 FY18 YoY% Major Topics Impact ( ) FXN Blood center products: Overall steady growth in and outside Japan driven mainly 104.7 105.0 +0% by automated blood processing system +2.8 Revenue (+2%) Therapeutic apheresis: M
Slide 11: Major Topics in FY18
Major Topics in FY18 Enhanced work style reform and Health and Productivity Management by opening satellite offices and distributing healthcare wearables to associates, etc. Corporate Selected as “the Health and Productivity Stock Selection" for five consecutive years (Feb) Five products won “
Slide 12: New Products Pipeline in FY18
New Products Pipeline in FY18 Category Products Region Launch Category Products Region Launch Closure device for distal EU, US Launched Access radial approach JP FY19 Next generation of oxygenator JP FY19 CV PTCA balloon Next generation of blood EU, US, Launched US Launched parameter monitoring syst
Slide 13: FY19 Guidance
FY19 Guidance (billion yen) FY18 FY19 YoY% FY16‐19 Results Guidance (FXN) CAGR +6% Revenue 599.5 635.0 +7% (+8%) Operating Profit 106.6 109.0 +2% +7% (%) (17.8%) (17.2%) (+7%) Adjusted Operating Profit 122.1 124.0 +2% (%) +6% (20.4%) (19.5%) (+6%) Profit for the Year 79.5 81.0 +2% +14% USD 111yen 10
Slide 14: FY19 Annual Guidance: Adjusted Operating Profit
FY19 Annual Guidance: Adjusted Operating Profit 4.8 8.0 (billion yen) Gross Price 4.7 margin ‐5.0 JP MDR Reimburse‐ ‐3.2 12.5 33.0 ment IT invest‐ ‐3.0 ment Increase 5.7 ‐1.5 of SG&A Increase 5.0 of R&D G/P FX 15.0 15.5 increment by sales increase 129.0 122.1 124.0 106.6 109.0 FY18 FY18 FY19 FY19 FY
Slide 15: FY19 Guidance
FY19 Guidance Revenue Adjusted Operating Profit Comments billion yen YoY% billion yen YoY% ( ) FXN ( ) FXN Back to double digit growth for Cardiac FY19 revenue in TIS business. 357.0 24% 85.0 and +9% +5% Negative impact of JP reimburse‐ (+12%) (+10%) Vascular FY18 328.5 25% 80.9 ment price cut and F
Slide 16: New Products Pipeline in FY19
New Products Pipeline in FY19 Category Products Region Category Products Region Closure device for distal General Access radial approach JP hospital Next generation of syringe pump JP product Coronary PTCA balloon EU, Narcotic analgesic for postoperative JP Asia Pharma‐ pain management (Fentanyl inj
Slide 17: FY18 Year-end Dividend Proposal: 27.0 JPY
FY18 Year‐end Dividend Proposal: 27.0 JPY Stably increasing, and aim for the target dividend payout ratio of 30% over the mid to long term FY18 annual dividend: 54.0 JPY (No change from the original guidance) Continue to increase FY19 annual dividend up to 28.0 JPY (56.0 JPY which is calculate
Slide 18: Reference
Reference <“TERUMO 18/26
Slide 19: FY18 Revenue and Growth by Region
FY18 Revenue and Growth by Region (billion yen) Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac and 47.8 280.7 84.9 124.9 38.2 32.7 328.5 Vascular (‐11%) (+5%) (+3%) (+5%) (+14%) (+4%) (+2%) Out of C&V Interventional 35.9 227.6 68.1 96.6 35.7 27.2 263.5 (
Slide 20: Operating Expenses
Operating Expenses (billion yen) FY17 FY18 YoY YoY% YoY% (FXN) Salaries & Wages 84.4 87.4 +3.0 +4% +4% Sales Promotion 17.8 18.2 +0.4 +2% +3% Logistical Costs 12.6 13.6 +1.0 +8% +9% Depreciation & 13.7 14.3 +0.6 +4% +5% Amortization Others 42.5 45.1 +2.6 +6% +7% SG&A Expenses Total 171.0 178.7 +7.6
Slide 21: Quarterly Results
Quarterly Results (billion yen) FY17Q4 FY18Q1 Q2 Q3 Q4 (Jan‐Mar) (Apr‐Jun) (Jul‐Sep) (Oct‐Dec) (Jan‐Mar) Revenue 150.8 143.0 142.0 158.6 155.9 Gross Profit 80.7 79.9 74.7 87.6 84.3 (53.5%) (55.8%) (52.6%) (55.2%) (54.1%) SG&A Expenses 45.9 43.5 43.5 45.0 46.7 (30.4%) (30.4%) (30.5%) (28.4%) (29.9%)
Slide 22: CAPEX and R&D Expenses
CAPEX and R&D Expenses (billion yen) Amortization 75.0 of acquired Expanded investment in Amortization of acquired intangible production capacity and 60.8 intangible assets assets space as well as IT in FY18 and goodwill 49.0 Depreciation includes 44.7 45.4 43.6 42.0 44.0 amortization of capital
Slide 23: FY18 Cash Flow
FY18 Cash Flow Operating CF Investment and Finance CF (billion yen) +93.6 ‐138.4 30.2 44.0 Income 22.9 Depreci‐ taxes ation and Increase of amorti‐ working 60.8 zation 102.7 capital CAPEX 47.8 Profit before Repayment 19.6 tax of 20.3 167.8 borrowings Dividends 10.1 Acquisition of Others Essen 123.0
Slide 24: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity Annual impact of one‐yen depreciation (billion yen) USD EUR CNY Revenue 1.7 0.8 2.2 Adjusted Operating 0.0 0.5 1.2 Profit <Reference> Impact when yen is depreciated by 10% North Latin EMEA Asia America America EUR Others CNY Others Adjusted Operating ‐0.1 1.0 6.5 1.3 1.9
Slide 25: 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 principal Contingent Conversion price Number of shares required Maturity amount Coupon conversion trigger (yen) to be issued for conversion (billion yen) pric
Slide 26: 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