Terumo Corporation · TSE:4543
Terumo — Q1 FY2017 Earnings Presentation
20 slides from Terumo's earnings presentation, August 2017
Slide 1: Results for the 1st Quarter of FYE March 2018
I will now explain our results for the 1st quarter of the fiscal year ending March 31, 2018. 1
Slide 2: Overview of the results
First, an overview of the results. Double-digit sales growth overseas drove our achievement of strong growth in both sales and profit. In all overseas markets, sales grew in double digits, with overseas growth of 19%; by company, all four businesses of the Cardiac and Vascular Company achieved doubl
Slide 3: Operating Income Variance Analysis
Here is the Operating Income Variance Analysis. The largest positive factor driving gross profit was the increase in sales, which accounted for 8.1 billion yen. Up to last fiscal year, we showed the factors of business mix and reduced costs separately in the variance analysis; we have combined these
Slide 4: Net sales by region
Next is net sales by region. As I mentioned, overseas markets grew very well; this brought the percentage of sales from Japan down four points year‐on‐year, from 36% to 32%. In Japan, Cardiac and Vascular sales grew positively, but negative growth for the General Hospital Company resulted in slightl
Slide 5: Sales by company
Next is sales by company. The first thing I would like to point out here is the percentage of Terumo Group sales accounted for by the Cardiac and Vascular Company; a year previously it was 51%, but that share grew six points to 57% in this 1st quarter. In our Mid‐ to Long‐term growth strategy that b
Slide 6: Cardiac and Vascular Company
In the Cardiac and Vascular Company, new acquisitions, to primarily the TIS and vascular businesses, contributed t ib t d greatly tl tto sales, l tto th the ttune off 9 9.5 5 billi billion yen. TIS access d devices i remain i strong. t In the neurovascular business, sales of coils improved, after be
Slide 7: General Hospital Company
In the General Hospital Company, sales grew negatively; however, the plan for the 1st quarter actually anticipated this. As you see here, the phasing out of low low‐profitability profitability pharmaceuticals, nutrition, and healthcare products contributed to the decline. In the Alliance business, t
Slide 8: Blood Management Company
Next is Blood Management Company. As you can see, Blood Management has returned to a growth pattern. US prices have stopped eroding and nearly flattened out, and sales grew in double digits in emerging markets, Latin America, and Asia, and therapeutic apheresis grew as well; this resulted in 4% year
Slide 9: Major topics for the quarter
The next slide lists major topics for the quarter. The main topic for the first quarter was the start of our new management team. In April, our Chairman, Mr. Mimura, and President, Mr. Sato, began their roles leading the new management team. They were also introduced at the last earnings announcemen
Slide 10: FY2017 new product pipeline
This next slide shows our FY2017 new product pipeline. The products listed here are each progressing in development d l and d we do d not anticipate any major delays. d l This concludes my explanation of the earnings announcement for the 1st quarter of the fiscal year ending March 2018. 10
Slide 11: Reference
“TERUMO Reference 11/19 11
Slide 12: FY17 Q1 Net Sales and Growth by Region
FY17 Q1 Net Sales and Growth by Region (billion yen) Business Outside of Japan Segment | Subtotal Americas Cardiac and 13.5 65.6 20.1 29.1 8.5 79 79.1 Vascular (+5%) (+27%) (+20%) (+32%) (+26%) (+27%) (+22%) OIG KENY 10.3 53.3 16.1 22.6 79 6.7 63.5 Interventional omens (+4%) (+28%) (+17) (+38%) (+24
Slide 13: Operating Expenses
Operating Expenses (billion yen) ue Hate ‘ra Salaries & Wages 17.9 20.3 4+2.4 +13% +12% Sales Promotion 3.8 4.1 +0.3 +7% +7% Logistical Costs 2.8 3.0 +0.2 +7% +7% Depreciation & 6.2 91 +2.9 +48% +45% Amortization Others 9.0 he) +0.9 +9% +8% 39.7 46.4 SG&A Expenses Total (31.9%) (33.3%) +6.7 +17% +15
Slide 14: Quarterly Results
Quarterly Results (billion yen) FY16 Q1 Q2 Q3 Q4 FY17Q1 (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) Net Sales 124.5 120.6 129.3 139.8 139.3 69.2 65.8 68.7 74.3 78.3 EST (55.6%) (54.6%) (53.2%) (53.2%) (56.2%) 39.7 39.6 41.0 47.4 46.4 SEINE GEES (31.9%) (32.9%) (31.7%) (34.0%) (33.3%) 8.1 8.2 8
Slide 15: CAPEX and R&D Expenses
CAPEX and R&D Expenses Amortization of Intangibles and Goodwill 44 45.4 41.4 40, Ta r \Depreciation reciation a 33.6 . F Ei FY2014 FY2015 FY2016 “TERUMO 13.8 8.5* FY2017 Q1 (billion yen) 56.0 28.5, CAPEX: CIP basis 41.0 FY2017 Guidance *Investment into venture technologies was booked in other than R
Slide 16: Cash Flow
Cash Flow (billion yen) Operating CF Investment and Finance CF +15.6 +31 Corporate Finance Depreci- ation and amorti- zation Increase of Repayment working for short- capital term debt CAPEX Income before 105.4 rer =~ k Cash at end of CAPEX = C.i.P. record basis FY16 Cash at end of each fiscal year i
Slide 17: FY17 Foreign Exchange Sensitivity
FY17 Foreign Exchange Sensitivity (billion yen) CNY Excl. tization tration Net Sales 1.8 Operating 3 ieee 0.0 0.2 0.5 0.9 <Reference> Impact of +/-10% fluctuation North | Latin EMEA Operating Income ~“TERUMO 5.6 1.0 1.4 SS) 17/N9 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 (billion yen) Japanese GAAP IFRS Impact | FY17 Q1 FY17 Qi
Slide 19: IR Contact
IR Contact Terumo Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@terumo.co.jp 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
Slide 20: ~<TERUMO
~<TERUMO 20