Terumo Corporation · TSE:4543
Terumo — FY2010 Earnings Presentation
22 slides from Terumo's earnings presentation, May 12, 2010
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2010
Financial Results for the Fiscal Year Ended March 31, 2010 Outlook for the Fiscal Year Ending March 31, 2011 Terumo Corporation May 12, 2010 1
Slide 2: Financial Results (Consolidated)
Financial Results (Consolidated) (Unit: Billion yen) FYE FYE Mar. 2009 Mar. 2010 YoY Net Sales 302.7 316.0 4% Gross Profit 158.2 (52.3%) 166.4 (52.6%) 5% SG&A Expenses 104.2 (34.5%) 103.1 (32.6%) -1% Operating Income 54.0 (17.8%) 63.3 (20.0%) 17% Ordinary Income 52.6 (17.4%) 63.6 (20.1%) 21% Net Inc
Slide 3: Net Sales (by Region)
Net Sales (by Region) Japan/Outside of Japan Total (Unit: Billion yen) Outside of Japan, Ratio +4% 46% Æ 45% FYE FYE (+9%) Mar.2009 Mar.2010 + 7% + 1% ( ) : local currency basis (+ 11%) 13.4 (Impact of Foreign Exchange) 162.0 173.9 + 1% + 0% 140.7 142.1 (+ 12%) 5.8 (+ 8%) 4.6 + 2% (+ 12%) 3.0 56.0 5
Slide 4: Sales (by Product Group)
Sales ( by Product Group) (Unit: Billion yen) FYE FYE Mar.2009 Mar.2010 + 2% 2.9 + 7% ( ) : local currency basis (+ 4%) (Impact of Foreign (+ 14%) 9.1 Exchange) 135.8 + 0% 146.5 149.8 127.0 (+ 6%) 1.3 23.9 23.9 + 21% (+ 22%) 0.1 5.3 6.4 General Cardiac & Blood Consumer Hospital Vascular Transfusion
Slide 5: Gross Profit Variance Analysis
Gross Profit Variance Analysis Factors in the increase YoY: Factors in the decrease YoY : +1.7pt -1.4pt Volume Impact of Foreign Exchange Cost Reduction +0.3 -0.5 Others Shift to Highly Profitable +0.6 -0.9 Products ・Retirement benefit expenses (-0.2) ・Depreciation (-0.2) +0.8 +0.3 FYE Mar. 2009 FYE
Slide 6: SG&A, R&D expenses
SG&A, R&D expenses (Unit: Billion yen) FYE FYE Change YoY% Mar. 2009 Mar. 2010 Salaries & Wages 37.4 38.2 +0.8 2% Sales Promotion 10.9 11.0 +0.1 1% 104.2 103.1 Logistical Costs 9.1 9.0 -0.1 -1% Depreciation & 5.5 5.1 -0.4 -9% Amortization Others 24.1 22.3 -1.8 -8% 34.5% 32.6% SG&A Sub Total 87.0 85.
Slide 7: Outlook for the Fiscal Year Ending March 31, 2011
Outlook for the Fiscal Year Ending March 31, 2011 7
Slide 8: Higher Earnings on Higher Sales
“Higher Earnings on Higher Sales” (Unit: Billion yen) FYE Mar. 2010 FYE Mar. 2011 Excl. impact of foreign exchange, YoY reimbursement price Result Forecast of drug & device Net Sales 316.0 333.0 5% 9% Operating Income 63.3(20.0%) 65.2(19.6%) 3% 17% Ordinary Income 63.6(20.1%) 65.0(19.5%) 2% Net Inco
Slide 9: Changes in Medical System
Japanese Market Changes in Medical System Apr. 2010: Revision of Medical Fee Reimbursement +1.55% Acute phase Chronic phase • Upward revision of procedure fee • Evaluation of backup support in chronic phase - 30 to 50%, in particular for highly- - Initial additions for emergency and specialized proc
Slide 10: Reorganizing Sales Force for Better Performance
Strategy for Japan Reorganizing Sales Force for Better Performance Functional Division and Strategies to match shift in policy Regional Cooperation Specialized Acute Phase Sales Reps for Certain Fields More advanced medical care and specialization Sales Reps Specializing Cooperation in Diabetes Chro
Slide 11: Healthcare Reforms in Progress Globally
Global Healthcare Reforms in Progress Globally The United States - Market expansion with improved coverage Keywords rate of uninsured persons - Review of high cost medical services Minimum Better - Taxation on companies (2.3% of sales from fiscal 2013) Invasiveness Efficiency Europe - Reduction of m
Slide 12: Global Applications of European Interventional Business Model
Global Applications of European Interventional Business Model Sales double in 4 years, reaching € 200M Applying model to Asia, Latin America Aspiration Catheter Continuous launch of new products "Eliminate" Expansion of domains and sales areas PTCA Balloon Catheter Sales PTCA Balloon Catheter "Tazun
Slide 13: Global Expansion and Strengthening of Sales and Manufacturing System
Global Expansion and Strengthening of Sales and Manufacturing System Turkey South America ・70 million people, ranked 2nd in Sales Network ・500 million people Europe (ASEAN: 600 million) ・Average age of 29 Expansion ・7-billion scale healthcare market ・Geographical advantages (ASEAN: 2.3 billion dolla
Slide 14: China: Expansion of Product Range and Establishment of Infrastructure
China Expansion of Product Range and Establishment of Infrastructure for the Future Establishment of infrastructure to prepare for locally self-sufficient business ・Strengthening alliances in development, production and sales ・Head office functions to be established in China ・Strengthening brand val
Slide 15: Reference
Reference 15 ORI
Slide 16: Income for the FYE Mar. 2010: To the Forecast for the year
Income for the FYE Mar. 2010: To the Forecast for the year （Unit: Billion yen） FYE Mar. 2010 FYE Mar. 2010 Impact of Foreign Forecast Result Progress Rates Exchange +2.5 Net Sales 315.0 316.0 100% （Raise progress rate by a little less than 0.8 %） Operating Income 63.0 (20.0%) 63.3 (20.0%) 100% +0.7
Slide 17: Income for the 2nd half FYE Mar. 2010: To the Forecast
Income for the 2nd half FYE Mar. 2010: To the Forecast for the 2nd Half （Unit: Billion yen） the 2nd Half the 2nd half Impact of Foreign Forecast Result Progress Rates Exchange Net Sales 156.9 157.9 101% +2.5 （Raise progress rate by 1.6 %） Operating Income 30.4 (19.4%) 30.7 (19.5%) 101% +0.7 （Raise p
Slide 18: Financial Results for the Three Months
Financial Results for the Three Months (Unit: Billion yen) Rate of Q4/FYE Mar. 2009 Q4/FYE Mar. 2010 Change Net Sales 71.2 77.1 8% Gross Profit 34.8（48.8%） 40.3（52.2%） 16% SG&A Expenses 26.3（36.8%） 27.0（35.0%） 3% Operating Income 8.5（12.0%） 13.3（17.2%） 56% Ordinary Income 9.9（13.8%） 13.2（17.2%） 34%
Slide 19: Forecast for FYE Mar. 2011, Impact of Reimbursement Drug & Device price
Forecast for FYE Mar. 2011, Impact of Reimbursement Drug & Device price （Unit: Billion yen） FYE Mar. 2011 Forecast FYE Mar. 2011 Excl. impact of foreign exchange, increase Forecast reimbursement price drug & device Impact Details Reimbursement price Sales 333.0 346.1 13.1 of drug & device 6.0 (YoY)
Slide 20: Gross Profit, SG&A, Operating Income Rates
Gross Profit, SG&A, Operating Income Rates (%) Gross Profit 53.7 52.7 52.6 50.7 SG&A Rate 35.2 33.7 32.1 33.1 Operating Income 20.0 20.6 19.5 15.5 1st half 2nd half 1st half 2nd half FYE Mar. 2009 FYE Mar. 2009 FYE Mar. 2010 FYE Mar. 2010 20
Slide 21: Changes of Quarterly Average Exchange Rates
Changes of Quarterly Average Exchange Rates JP¥ 180 1EUR (FYE Mar. 2009) 160 140 1EUR (FYE Mar. 2010) 120 1US$ (FYE Mar. 2009) 100 1US$ (FYE Mar. 2010) 80 Q1 Q2 Q3 Q4 21
Slide 22: IR Contact
IR Contact TERUMO Corporation Corporate Communication (IR) Dept. E-mail: kouhou_terumo01@terumo.co.jp Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo