Terumo Corporation · TSE:4543
Terumo — H1 FY2015 Earnings Presentation
19 slides from Terumo's earnings presentation, November 2015
Slide 1: First half results for the period ending March 31, 2016
I will now explain the first half results for the period ending March 31, 2016. 1
Slide 2: Overall results
First, the overall results. We continued W i d the h positive i i results l off the h first fi quarter, seeing i double‐digit d bl di i growth h year on year iin sales and operating income. Each company posted good sales, with the interventional systems and neurovascular businesses making an especia
Slide 3: Operating income impact analysis
Here is our analysis of positive and negative impacts on the operating income result. Operating income for the first half increased 6.1 billion yen from 33 billion the previous year, for a result of 39.1 billion yen. The largest positive impact came from a 7.6‐billion‐yen increase in gross profit th
Slide 4: Regional composition of sales
The regional composition of sales changed little from the first quarter. The General Hospital Company drove growth in Japan for a 1% year‐on‐year increase. Outside Japan, sales saw double‐digit growth, or a 17% increase. Sales increased notably in the U.S., China, Asia, and other areas excluding Eur
Slide 5: Sales by company
Next, sales by company. Sales increased 18% for the Cardiac & Vascular Company, and 10% for the Blood Management Company—double‐digit growth for both companies. When excluding foreign exchange impact, all companies saw positive sales growth. Sales composition was the same as the first quarter. 5
Slide 6: Cardiac & Vascular Company details
I will now discuss more details for each company. Sales for the Cardiac & Vascular Company increased 18% year on year on the strength of sales growth for Interventional Systems and neurovascular businesses, especially in the North America. Last fiscal yyear, we experienced p sales difficultyy after
Slide 7: General Hospital Company
The General Hospital Company saw a 3% year‐on‐year increase in sales, and achieved business profit increase of 22%. Business profitability was restored from 12% in the previous first‐half period to 15%. The high‐profitability D&D (Drug and Device) business and DM (diabetes‐management) business both
Slide 8: Blood Management Company
The Blood Management Company continues to see large growth in its sales of therapeutic apheresis and cell‐processing systems. In addition, the blood component collection system grew, especially in emerging countries. Starting in the second quarter, the price declines in business for U.S. blood cente
Slide 9: Main topics from the second quarter
I will now introduce the main topics of interest from the second quarter. One topic is that we dissolved a cross‐shareholding arrangement and used the resulting 11 billion yen to acquire our own shares. We had already repurchased 3 billion yen in company stock the previous fiscal year. In recent yea
Slide 10: FY2015 pipeline product launches
Products in the FY2015 pipeline are being launched as scheduled. Thank you. 10
Slide 11: Reference
“TERUMO Reference 11/19 11
Slide 12: 1H FY15 Net Sales and Growth by Region
1H FY15 Net Sales and Growth by Region Jap: Segment (Billion yen) Business Outside of Japan an | ' G. Total | Subtotal | Europe | Americas Cardiac & Wacaulhy 22.8 (-3%) 102.8(+11%) 32.5 (+3%) Out of C&V Interventional 17.2 (5%) 81.1 (+16%) 26.1 (+5%) Systems* General 62.0 (+3%) 18.8 (6%) 4.8(-18%) H
Slide 13: Operating Expenses
Operating Expenses (Billion yen) reli 33.9 38.2 +43 +13% lages Sales Promotion ao 8.1 +0.5 +7% Logistical Costs 5.3 5.5 +0.2 +3% Depreciation & Rragaivation 11.9 14.0 +2.1 +18% Others 17.6 18.6 +1.0 +5% Se rene 76.3 (32.8%) 84.4 (32.6%) 48.1 +10% — +3% R&D Expenses 13.6 (5.8%) 15.9 (6.1%) +2.3 +17%
Slide 14: Quarterly Results
Quarterly Results (Billion yen) FY14 Q2 | Q3 Q4 | FY15Q1 Q2 (Jul-Sep) | (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) Net Sales 118.4 129.9 126.3 128.7 130.5 Gross Profit 62.3 (52.6%) 67.8 (52.2%) 65.4 (51.7%) 69.0 (53.7%) 70.4 (53.9%) SG&A Expenses 38.5 (32.5%) 40.5 (31.2%) 42.4 (335%) 41.7 (32.5%) 42.7
Slide 15: CAPEX, R&D Expenses
CAPEX, R&D Expenses (Billion yen) EY2015 1H FY2015 Progress to Guidance Result Guidance CAPEX 36.0 14.9 41% Depreciation & 0 riansation = 45.0 22.0 49% R&D Expenses 35.0 15.9 45% Depreciation & Amortization: Including intangibles CAPEX: Acquisition basis <Downward revision in FY15 CAPEX guidance to
Slide 16: Cash Flow
Cash Flow Operating CF Investing and Financing CF _ (Billion yen) +34.7 -23.6 | I l Depreci- — Corpo- ation & rate tax Amorti- and Increase zation others in working capital and others CAPEX Sale of Acqui- St invest- : sition of ment own Dividend 2 4 a securities shares Others 140.8 Cash at end « ar
Slide 17: Foreign Exchange Sensitivity
Foreign Exchange Sensitivity (Billion yen) Net Sales 1.8 0.7 Operating Income 0.1 0.2 @ For US$, sales expansion in U.S. drove higher FX sensitivity at sales. However, the increase in overseas production ratio since acquisition of Caridian BCT resulted in less impact of yen depreciation against US$
Slide 18: 1H FY15: Impact of FX
1H FY15: Impact of FX Average exchange rate in 1H FY14 FY15 US$ 103 yen 122 yen (+19yen) Depreciated by 18% EUR 139 yen 135 yen (- 4yen) Appreciated by 3% CNY 16.6 yen 19.5 yen (+ 3yen) Depreciated by 17% (Billion yen) Operating income Impact on goodwill amortization and US$ +13.0 -0.7 others 1.5 EU
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