Terumo Corporation · TSE:4543

Terumo — FY2012 Earnings Presentation

23 slides from Terumo's earnings presentation, May 9, 2013

  1. Slide 1: Financial Results for the Fiscal Year Ending March 31, 2013

    Financial Results for the Fiscal Year Ending March 31, 2013 Terumo Corporation May 9, 2013

  2. Slide 2: Consolidated Results for FYE Mar. 2013

    Consolidated Results for FYE Mar. 2013 (billion of yen) FYE Mar. 2012 FYE Mar. 2013 YoY% Net Sales 386.7 402.3 + 4% Gross Profit 204.6 (52.9%) 205.7 (51.1%) + 1% SG&A Expenses 117.3 (30.3%) 125.4 (31.2%) + 7% R&D Expenses 24.3 ( 6.3%) 27.1 ( 6.7%) +12% Operating Income 63.0 (16.3%) 53.2 (13.2%) -16%

  3. Slide 3: Net Sales (by Region)

    Net Sales (by Region) (billion of yen) Consolidated: +4% (+3%) FYE FYE Mar. 2012 Mar. 2013 ( ) Excluding Foreign Exchange Japan Outside Japan Europe +5% 71.8 -2% +10% (+6%) 75.4 (+8%) Americas +11% 79.1 (+6%) 87.9 +31% 13.3 190.5 185.9 196.2 216.4 China (+24%) 17.4 Asia +11% 32.1 & Others (+8%) 35.6

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

    Net Sales (by Business Segment) (billion of yen) +2% +6% FYE FYE (+2%) (+4%) Mar. 2012 Mar. 2013 ( ) Excluding Foreign Exchange +4% (+3%) 154.3 157.8 160.6169.7 71.8 74.7 General Cardiac & Blood Hospital Vascular Management 2013/5/9 ©Terumo Corporation 4/23

  5. Slide 5: FYE Mar. 2013 Net Sales and Growth by Region

    FYE Mar. 2013 Net Sales and Growth by Region (billion of yen) Outside Business G. Japan of Japan Asia & Segment Total Europe Americas China Total Others General 126.9 30.9 10.1 7.7 1.1 12.0 157.8 Hospital ( 2%) ( 0%) (-3%) (-3%) (16%) ( 4%) ( 2%) Cardiac & 46.2 123.6 45.4 50.3 13.6 14.3 169.7 Vascul

  6. Slide 6: SG&A Expenses

    SG&A Expenses (billion of yen) FYE Mar. 2012 FYE Mar. 2013 YoY YoY% Salaries & Wages 48.6 53.2 +4.6 +9% Sales Promotion 12.0 12.5 +0.5 +4% Logistical Costs 10.0 10.2 +0.2 +1% Depreciation & 17.4 18.3 +0.9 +5% Amortization Others 29.3 31.2 +1.9 +7% General Administrative Total 117.3 (30.3%) 125.4 (31

  7. Slide 7: SG&A Expenses

    SG&A Expenses (billion of yen) FYE Mar. 2012 FYE Mar. 2013 YoY YoY% Salaries & Wages 48.6 53.2 +4.6 +9% ¾ Real increase: +3.5 billion yen / Impact of foreign exchange: +1.1 billion yen ¾ Main focus on growing businesses and US market C&V: +2.0 billion yen / Blood Management: +0.8 billion yen Others

  8. Slide 8: Operating Income Variance Analysis

    Operating Income Variance Analysis (billion of yen) 4.2 7.6 Operating Income Reimburse- 2.3 Imprvmnt ment Price Cost for 2.8 by Sales Revision in Quality System Increase 1.3 Increase JP & Price Improvement in R&D and Others Others erosion at TCVS expenses 63.0 (Reimburse- ment revision in Japan: 5.6

  9. Slide 9: Quality Management System Improvement at TCVS

    Quality Management System Improvement at TCVS ¾ Planned improvement works completed as scheduled ¾ However, an additional data requirement by FDA Æ 2.3 billion yen of additional cost ¾ Recertification by FDA to be delayed by 6 months Æ End of FYE Mar. 2014 2013/5/9 ©Terumo Corporation 9/23

  10. Slide 10: Short of Operating Income Forecast

    Short of Operating Income Forecast, 60 billion yen (billion of yen) „ Factors for lowered operating income in Q4 ¾ Short of the sales target / Cost increase 4.5 billion yen ¾ Additional cost for quality management system improvement at TCVS 2.3 billion yen 2013/5/9 ©Terumo Corporation 10/23

  11. Slide 11: Forecast for FYE Mar. 2014

    Forecast for FYE Mar. 2014 (billion of yen) FYE Mar. 2013 FYE Mar. 2014 YoY% Actual Forecast Net Sales 402.3 460.0 +14% 53.2 70.0 Operating Income +32% (13.2%) (15.2%) 61.2 79.0 (Excl. amortization of goodwill) +29% (15.2%) (17.2%) Ordinary Income 51.4 67.5 +31% Net Income 47.0 42.0 -11% US$ 83 yen

  12. Slide 12: Operating Income Forecast (Variance Analysis)

    Operating Income Forecast (Variance Analysis) (billion of yen) 1.4 4.8 1.5 Device 1.8 Decrease Tax (US) Increase 3.7 Cost in cost for in R&D Reduction Quality Operating expenses System 9.4 Income Imprvmnt. Imprvmnt Foreign by Sales Exchange Increase 70.0 and Others 53.2 FYE FYE Mar. 2013 Mar. 2014 A

  13. Slide 13: Reference

    Reference 2013/5/9 ©Terumo Corporation 13/23

  14. Slide 14: Consolidated Results: Q1 thru Q4

    Consolidated Results: Q1 thru Q4 (billion of yen) Q1 Result Q2 Result Q3 Result Q4 Result G. Total (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) Net 95.9 96.0 103.9 106.5 402.3 Sales 51.7 48.8 52.9 52.2 205.7 Gross Profit (53.9%) (50.9%) (50.9%) (49.0%) (51.1%) SG&A 36.2 36.1 38.5 41.6 152.5 Expenses (37.

  15. Slide 15: Q4 Net Sales (by Business Segment and Region)

    Q4 Net Sales (by Business Segment and Region) (billion of yen) Outside of Business G. Japan Japan Asia & Segment Total Europe Americas China Total Others General 28.9 9.1 3.1 2.3 0.3 3.5 38.0 Hospital (-2%) ( 2%) ( 2%) (-5%) (-8%) (10%) (-1%) Cardiac & 11.6 35.8 13.6 14.5 3.9 3.9 47.4 Vascular (-15%

  16. Slide 16: Gross Profit Variance Analysis

    Gross Profit Variance Analysis (%) ０.０ ０.５ Production ０.９ ０.３ Shift to Volume High Profit Cost Products Price ０.８ Reduction (Reimburse- ment Price Cost for ０.５ Revision in Quality Cost ０.４ System 52.9% JP: 0.7) Imprvmnt. Increase Others 51.1% FYE FYE Mar. 2012 Mar. 2013 2013/5/9 ©Terumo Corporation

  17. Slide 17: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (billion of yen) FYE FYE FYE Mar. 2013 Mar. 2013 YoY Mar. 2014 YoY Forecast Actual Forecast CAPEX* 38.0 32.2 +5.6 45.0 +12.8 Depreciation & Amortization* 32.5 32.6 +3.8 37.0 +4.4 R&D Expenses 27.0 27.1 +2.8 30.0 +2.9 * Including intangibles CAPEX: acquisition basis 2013/5/9 ©Teru

  18. Slide 18: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (billion of yen / year) US$ EUR Net Sales 1.7 0.7 Operating Income 0.3 0.4 2013/5/9 ©Terumo Corporation 18/23

  19. Slide 19: FYE Mar. 2013 Cash Flow

    FYE Mar. 2013 Cash Flow „ Used in good balance among investment for growth, repayment of debt, and dividend (billion of yen) in out Others Depreciation 12.1 & Repayment Amortization of debt 32.6 11.4 Capital Investment 32.2 Net Income 31.5 (*1) Dividend (*2) 8.4 Total 64.1 Total 64.1 *1:Excluded 15.

  20. Slide 20: Gross Profit, SG&A Expenses, Operating Income

    Gross Profit, SG&A Expenses, Operating Income (%) Gross Profit 51.8 53.9 50.9 50.9 49.0 SG&A Expenses 38.3 37.8 37.6 37.0 39.1 Operating Income 13.5 16.1 13.3 13.9 9.9 Q4 Q1 Q2 Q3 Q4 Mar. 2012 Mar. 2013 (Quarterly: 3 months) 2013/5/9 ©Terumo Corporation 20/23

  21. Slide 21: Changes in Gross Profit (%)

    Changes in Gross Profit (%) 57.0 FY09 FY10 FY11 FY12 (%) 56.0 55.0 54.0 53.0 52.0 51.0 50.0 49.0 48.0 㹏 㸯 㹏 㸰 㹏 㸱 㹏 㸲 FY09 53.6 51.8 52.9 52.2 FY10 52.1 52.3 51.7 52.0 FY11 53.2 55.0 51.7 51.8 FY12 53.9 50.9 50.9 49.0 (Quarterly: 3 months) 2013/5/9 ©Terumo Corporation 21/23

  22. Slide 22: Changes of Quarterly Average Exchange Rates

    Changes of Quarterly Average Exchange Rates 130 EUR (Mar. 2012) 122 117 110 EUR (Mar. 2013) 104 110 103 104 98 105 US$ (Mar. 2012) 90 82 81 92 79 US$ (Mar. 2013) 80 78 77 79 70 Ｑ１ Ｑ２ Ｑ３ Ｑ４ (Quarterly: 3 months) 2013/5/9 ©Terumo Corporation 22/23

  23. Slide 23: 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

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