Terumo Corporation · TSE:4543
Terumo — H1 FY2017 Earnings Presentation
19 slides from Terumo's earnings presentation, February 2018
Slide 1: First-half earnings results and dividend increase
I will now explain the Terumo first-half earnings results for the period ending March 31, 2018. On October 19th, we revised our earnings outlook, and our first-half numbers do not differ greatly from the numbers we announced then. Some numbers improved slightly, but there were no big changes. Due to
Slide 2: Main points of the first-half results
I will now explain the earnings results for the first half. Now, some main points from this announcement: In all sales and income areas we achieved our highest‐ever numbers. In sales, the Cardiac & Vascular Company did well, with all four of its businesses achieving double‐digit sales growth, leadin
Slide 3: Operating income variance analysis
Here is the operating income variance analysis. As you can see, sales growth was the biggest factor driving increased gross profit, which led to higher operating income. The contribution of gross margin improvement was 5.4 billion yen; when breaking this amount down, we see existing business portfol
Slide 4: Sales by region
The next slide shows sales by region. In Japan, sales grew 1% year‐on‐year in the first half. The first quarter saw a decrease of 1%, but then grew in the second quarter to bring the first half positive at 1%. Outside Japan, year‐on‐year sales growth exceeded 20% in all regions, continuing the first
Slide 5: Sales by business segment
Next is sales by business segment. Just as in the first quarter, the Cardiac & Vascular and Blood Management companies sales grew, while General Hospital Company saw decreased sales. However, the rate at which the Cardiac & Vascular and Blood Management companies grew at a higher percentage in the f
Slide 6: Cardiac & Vascular Company results
I will now give more explanation of business segment results. As I mentioned, all four businesses of the Cardiac & Vascular Company grew sales in the double‐ digits. First, in the TIS business, our newly acquired Vascular Closure Device performed very well. The sales of the acquired business were fa
Slide 7: General Hospital Company results
In General Hospital, I mentioned earlier that growth was negative in the first quarter; however, the second quarter saw positive growth, so while the first half ended up negative overall, the decrease was softened. The major negative impacts were the ending of certain businesses, businesses which we
Slide 8: Blood Management Company results
In Blood Management, sales and business profit continue to steadily recover. As we have mentioned previously, fiscal year 2016 was a bottoming‐out period for the Blood Management Company, when American blood center product prices dropped as planned. However, at the same time the profitable businesse
Slide 9: Major topics (skipped)
Since time is short, I will skip over the major topics slide. 9
Slide 10: FY17 product pipeline
Regarding the FY17 product pipeline, development is currently progressing as planned. This concludes my explanation. Thank you very much. 10
Slide 11: Reference
“TERUMO Reference 11/19 11
Slide 12: 1H FY17 Net Sales and Growth by Region
1H FY17 Net Sales and Growth by Region (billion yen) Outside of Japan elie Japan : G. Total Segment Subtotal Europe | Americas} China Asia Cardiac and 26.4 aleyil 72 39.6 58.7 16.7 16.1 157.6 Vascular (+8%) (+28%) (+23%) (+32%) (+25%) (+28%) (+24%) Out of C&V income ene 20.2 106.4 31.8 45.6 15.6 13.
Slide 13: Operating Expenses
Operating Expenses (billion yen) Salaries & Wages 35.8 41.4 +5.6 +16% +11% Sales Promotion TS 8.0 +0.5 +7% +3% Logistical Costs 55) 6.1 +0.6 +11% +9% De precauon. 12.3 18.4 46.1 +50% +43% Amortization Others 18.2 19'9 srley/ +9% +6% 79.3 93.8 SG&A Expenses Total (32.4%) (33.0%) +14.5 +18% +14% 16.3
Slide 14: Quarterly Results
Quarterly Results (billion yen) FY16 Q2 Q3 Q4 FY17 Q1 Q2 (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Net Sales 120.6 129.3 139.8 139.3 145.3 Groce Prarie 65.8 68.7 74.3 78.3 81.4 (54.6%) (53.2%) (53.2%) (56.2%) (56.1%) 39.6 41.0 47.4 46.4 47.3 SG&A Expenses 29%) (31.7%) (34.0%) (33.3%) (32.6%)
Slide 15: CAPEX and R&D Expenses
CAPEX and R&D Expenses (billion yen) ™ Expand investment in arahacinie 56.0 production capacity of Intangibles and Goodwill 447 46.5 and space as well as 414 a 29.4 FY14 ~TERUMO Depreciation CAPE OP BEE projected to increase IT infrastructure in TS as FY17 27.8 28.5 19.0 ®& Amortization of intangibl
Slide 16: Cash Flow
Cash Flow Operating CF Investment and Finance CF (billion yen) +47.0 -6.1 II | Corporate Tax Finance i Repayment 0.7 Depreci- Increase of for short- = ation and working term debt Dividends Others amorti- capital CAPEX zation 146.3 Income before 120.0 105.4 tax Cash at end of CAPEX = C.i.P. record ba
Slide 17: FY17 Foreign Exchange Sensitivity
FY17 Foreign Exchange Sensitivity (billion yen) CNY Excl Incl. Amortization Amortization Net Sales 1.8 pbereting 0.0 0.2 0.5 0.9 Income . . . . <Reference> Impact of +/- 10% fluctuation North | latin | EMEA america | America 5.6 1.0 1.4 3.3 Operating Income ~TERUMO 17/19 17
Slide 18: (Reference) IFRS Basis
(Reference) IFRS Basis ® Adopting International Financial Reporting Standards (IFRS) from the year- end financial announcement for FY17 ® Schedule for disclosure FY17 Q1-Q3 : Japanese GAAP FY17 year-end financial announcement —: IFRS. Reference J GAAP IFRS Net Sales 284.6 284.6 = Operating 47.9 Sys)
Slide 19: 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