Terumo Corporation · TSE:4543

Terumo — Q3 FY2014 Earnings Presentation

23 slides from Terumo's earnings presentation, Feb 3, 2015

  1. Slide 1: Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2015

    Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2015 (FY2014) Terumo Corporation Senior Executive Officer, Investor Relations, Corporate Communication Dept. Kazuaki Kitabatake February 3, 2015

  2. Slide 2: Highlights

    Highlights  Secured increase both in sales and profit while absorbing reimbursement Corporate price cut in Japan  In Q3, sales in Japan increased  Achieved continuous double-digit sales growth in overseas IS and Neurovascular businesses Cardiac &  In Japan, mainly IS business sales recovered in

  3. Slide 3: Increase in Sales and Profit

    Increase in Sales and Profit (Billion yen) Q3 YTD Q3 YTD YoY% YoY% (Excl. FX) FY2013 FY2014 Net Sales 345.3 363.2 +5% +1% Gross Profit 178.7 (51.7%) 190.7 (52.5%) +7% +2% SG&A Expenses 108.0 (31.2%) 116.9 (32.1%) +8% R&D Expenses 22.4 ( 6.5%) 20.9 ( 5.8%) -7% Operating Income 48.3 (14.0%) 52.9 (14.6

  4. Slide 4: Operating Income Variance Analysis

    Operating Income Variance Analysis (Billion yen) 2.4 1.4 SG&A 2.1 G/P increase improve- (-3.6) 6.0 Product ment by mix cost Decrease 5.3 Improve- reduction of Dura- JP ment heart Reimburse- 52.9 G/P R&D, 2.2 ment increment Etc. (-3.5) FX by sales (+2.2) 48.3 increase Price erosion (-2.5) Q3 YTD Q3 Y

  5. Slide 5: Net Sales by Region

    Net Sales by Region (Billion yen) Consolidated: +5% (+1%) Q3 YTD Q3 YTD FY2013 FY2014 ( ) Excluding Foreign Exchange Japan Outside of Japan 78.4 -2% +10% (+4%) Europe 70.2 +12% (+5%) 224.3 90.9 Americas 82.0 +11% (+4%) 38% 16.9 China 62% 17.3 -2% (-8%) 38.0 Asia & Others 138.9 33.7 +13% (+7%) © Teru

  6. Slide 6: Net Sales by Business Segment

    Net Sales by Business Segment (Billion yen) Cardiac & Vascular Q3 YTD Q3 YTD General Hospital FY2013 FY2014 Blood Management ( ) Excluding Foreign Exchange 168.0 Cardiac & Vascular 20% +10% (+4%) 152.8 46% 122.5 General Hospital 123.9 -1% (-2%) 34% 72.7 Blood Management 68.5 +6% (+1%) © Terumo Corpo

  7. Slide 7: Profit by Business Segment

    Profit by Business Segment (Billion yen) Q3 YTD Q3 YTD YoY% FY2013 FY2014 YoY% (Excl. FX) Cardiac & Vascular 32.0 (21%) 34.1 (20%) +6% -3% Business General Profit Hospital 16.2 (13%) 16.5 (13%) +2% +1% Blood Management 13.8 (20%) 14.2 (20%) +3% +1% Others* -1.6 1.0 - - Operating Income (Excl. amorti

  8. Slide 8: Cardiac & Vascular: Increase in Sales and Profit

    Cardiac & Vascular: Increase in Sales and Profit (Billion yen) Q3 YTD Q3 YTD YoY% YoY% (Excl. FX) FY2013 FY2014 Sales 152.8 168.0 +10% +4% Business Profit (%) 32.0 (21%) 34.1 (20%) +6% -3% <Sales>  Increase in overseas IS business and neurovascular intervention products (stent, etc.) + 12.5 BJPY 

  9. Slide 9: General Hospital: Increase in Profit due to Growth of High Margin Products

    General Hospital: Increase in Profit due to Growth of High Margin Products (Billion yen) Q3 YTD Q3 YTD YoY% YoY% (Excl. FX) FY2013 FY2014 Sales 123.9 122.5 -1% -2% Business Profit (%) 16.2 (13%) 16.5 (13%) +2% +1% <Sales>  Japan: effects of changes in the healthcare market environment in 1H - 1.2 B

  10. Slide 10: Blood Management: Increase in Sales and Profit

    Blood Management: Increase in Sales and Profit (Billion yen) Q3 YTD Q3 YTD YoY% YoY% (Excl. FX) FY2013 FY2014 Sales 68.5 72.7 +6% +1% Business Profit (%) 13.8 (20%) 14.2 (20%) +3% +1% <Sales>  Increased sales both in whole blood collection and blood component collection in Latin America and Asia +

  11. Slide 11: Quarterly Results

    Quarterly Results (Billion yen) Q3 Q4 Q1 FY14 Q2 Q3 (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) Net Sales 119.2 122.1 114.9 118.4 129.9 Gross Profit 61.5 (51.6%) 63.3 (51.9%) 60.7 (52.8%) 62.3 (52.6%) 67.8 (52.2%) SG&A Expenses 43.7 (36.7%) 46.3 (37.9%) 44.6 (38.8%) 45.4 (38.3%) 47.9 (36.9%) O

  12. Slide 12: Profit Ratio, SG&A Expenses Ratio

    Profit Ratio, SG&A Expenses Ratio (%) 51.6 51.9 52.8 52.6 52.2 Gross Margin 37.9 38.8 38.3 SG&A 36.7 36.9 Expenses Ratio 14.9 15.3 14.0 14.0 14.3 Operating Margin FY13 FY14 Q3 Q4 Q1 Q2 Q3 © Terumo Corporation 2015/2/3 12/23

  13. Slide 13: New Product Pipeline for 2H

    New Product Pipeline for 2H Business Product Region Launch EU, Coronary New PTCA balloon ◎ L. America, Asia PTA balloon (above the knee) JP, US Peripheral PTA balloon (below the knee) EU Done Stent for small vessel (Misago) EU PTA balloon, Coil assist stent Coil assist stent ◎ US Done below the knee

  14. Slide 14: Reference

    Reference © Terumo Corporation 2015/2/3 14/23

  15. Slide 15: Q3 YTD Net Sales and Growth by Region

    Q3 YTD Net Sales and Growth by Region (Billion yen) Business Outside of Japan Japan G. Total Segment Subtotal Europe Americas China Asia Cardiac & 36.0 (-2%) 132.0 (6%) 48.8 (6%) 54.8 (9%) 12.9 (-12%) 15.5 (15%) 168.0 (4%) Vascular Out of C&V Interventional 27.6 (-3%) 99.8 (7%) 38.8 (8%) 36.9 (13%)

  16. Slide 16: SG&A Expenses

    SG&A Expenses (Billion yen) Q3 YTD Q3 YTD YoY YoY% FY2013 FY2014 Salaries & Wages 47.2 52.1 +4.9 +10% Sales Promotion 10.6 11.6 +1.0 +9% Logistical Costs 8.1 8.2 +0.1 +1% Depreciation & Amortization 16.7 18.4 +1.7 +10% Others 25.4 26.6 +1.2 +5% General Administrative Total 108.0 (31.2%) 116.9 (32.1%

  17. Slide 17: SG&A Expenses

    SG&A Expenses (Billion yen) Q3 YTD Q3 YTD YoY YoY% FY2013* FY2014 General Administrative Total 113.3 116.9 +3.6 +3% R&D Expenses 23.1 20.9 -2.2 -10% SG&A Expenses Total 136.4 137.8 +1.4 +1% * Value adjusted by excluding FX impact © Terumo Corporation 2015/2/3 17/23

  18. Slide 18: Non-operating Income & Expenses, Extraordinary Gains & Losses, Income Taxes

    Non-operating Income & Expenses, Extraordinary Gains & Losses, Income Taxes (Billion yen) Q3 YTD Q3 YTD FY2013 FY2014 Operating Income 48.3 52.9 Non-operating Income & Expenses +1.7 +5.8 FX gains +8.1 Exchange rates End of Mar. 2014 End of Dec. 2014 Difference US$ 102.9 yen 120.6 yen (+17.7) EUR 141

  19. Slide 19: CAPEX, R&D Expenses

    CAPEX, R&D Expenses (Billion yen) FY2014 Q3 YTD Progress to Guidance FY2014 guidance CAPEX 42.0 30.8 73% Depreciation & Amortization 41.0 30.1 73% R&D Expenses 31.0 20.9 67% Depreciation & Amortization: Including intangibles CAPEX: Acquisition basis © Terumo Corporation 2015/2/3 19/23

  20. Slide 20: Cash Flow

    Cash Flow Financed 100 BJPY by CB, invested 90 BJPY in short-term financial asset Despite corporate tax burden in Q1 and Q3, operating CF recovered well. SB of 40 BJPY will be redeemed in March, 2015. (Billion yen) Operating CF Investing and Financing CF +42.4 -18.3 30.1 28.7 90.0 Depreci- Corpo-

  21. Slide 21: Foreign Exchange Sensitivity

    Foreign Exchange Sensitivity (Billion yen/year) US$ EUR Net Sales 1.8 0.7 Operating Income 0.3 0.4 © Terumo Corporation 2015/2/3 21/23

  22. Slide 22: Quarterly Average Exchange Rates Trend

    Quarterly Average Exchange Rates Trend JPY EUR (FY2014) 143 140 138 140 141 137 129 131 120 115 USD (FY2014) 102 104 100 103 99 99 100 80 Q1 Q2 Q3 Q4 © Terumo Corporation 2015/2/3 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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