Olympus Corp. · TSE:7733
Olympus — Olympus Corp Ord — Q1 2025 Earnings Presentation
22 slides from Olympus's earnings presentation, Aug 7, 2024
Slide 1: Consolidated Financial Results for the 1st Quarter for Fiscal Year 2025
Consolidated Financial Results for the 1st Quarter for Fiscal Year 2025 Olympus Corporation | President and CEO, Stefan Kaufmann | Executive Officer and CFO, Tatsuya Izumi | August 7, 2024
Slide 2: Disclaimer
Disclaimer This material contains forward-looking statements that reflect management’s current views, plans, and expectations based on information available at the time of preparation. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, un
Slide 3: CEO message: good start to fiscal year
We had a good start to our fiscal year and expect both sales and profits to continue to grow throughout FY2025.” Director, Representative Executive Officer, President and Chief Executive Officer Stefan Kaufmann Page 3 No data copy / No data transfer permitted
Slide 4: Key Message: 1Q Consolidated Financial Results
Key Message 1Q Consolidated Financial Results Revenue Adjusted operating profit ¥ 234.8 billion ESD +16 % / +5 % ¥ 37.2 billion + 9.0 ¥ billion +15 % / +3 % TSD +13 % / +2 % Adjusted Operating Margin 15.9% +2.1 pt % YoY including FX % YoY after FX adjustment 1 Remediation and quality transformation
Slide 5: 1Q of Fiscal Year 2025 Consolidated Financial Results
1Q of Fiscal Year 2025 Consolidated Financial Results 1 Revenue: Led by strong sales in North America, where all three focus areas, including “EVIS X1” GI endoscopy system, performed well. With yen depreciation serving as a tailwind, revenue increased by 15% on a consolidated basis 2 Operating profi
Slide 6: 1Q Endoscopic Solutions Division (ESD)
1Q of Fiscal Year 2025 Endoscopic Solutions Division (ESD) (Billions of yen) FY2024 1Q FY2025 1Q FY2025 Forecasts % of progress 35%1 50%1 Revenue 127.1 147.4 645.0 23% Operating profit 22.2 27.4 162.0 17% Revenue -3.4 -5.2 -12.5 - ¥147.4 Other income and expenses Adjusted operating profit 25.6 32.6
Slide 7: 1Q Therapeutic Solutions Division (TSD)
1Q of Fiscal Year 2025 Therapeutic Solutions Division (TSD) (Billions of yen) FY2024 1Q FY2025 1Q FY2025 Forecasts % of progress 20%1 30%1 Revenue 77.2 87.3 363.0 24% Operating profit 9.7 10.3 54.5 19% Revenue ¥87.3 Other income and expenses -1.9 -3.7 -7.5 - Adjusted operating profit 11.6 13.9 62.0
Slide 8: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 1 Cash and cash equivalents decreased due to repayment of long-term debts and dividend payments 2 Both assets held for sale and liabilities directly associated with assets held for sale increased due to transfer of Orthopedic Business End of Mar. End of J
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows 1 FCF: Although FCF decreased significantly YoY due to transfer of Evident in previous fiscal year, Adjusted FCF1 was ¥14.8 billion 2 Financing CF: Negative ¥77.5 billion due mainly to repayment of long-term debts and dividend payments 1Q (Apr. to Jun.) (Billions of yen) FY20
Slide 10: OLYMPUS
OLYMPUS
Slide 11: Appendix
OLYMPUS —— Appendix
Slide 12: Changes in Reporting Structure
Changes in Reporting Structure Due to transfer of Orthopedic Business, which was included in Other, it is disclosed as a discontinued operation1 from Fiscal Year 2025. reportable segments2 are now two: ESD and TSD (based on IFRS). FY2024 FY2025 ESD ESD Disclosed as “reportable segments” Continuing T
Slide 13: Factors that Affected Consolidated Operating Profit
1Q of Fiscal Year 2025 Factors that Affected Consolidated Operating Profit 1Q (Apr. to Jun.) (Billions of yen) Change in cost of sales Change in +0.8 SG&A expenses Other Impact of Change in -1.9 -3.4 foreign sales ＜Negative factors＞ exchange +5.0 Expenses related to “Career support for +4.4 R&D
Slide 14: 1Q Results by Segment
1Q of Fiscal Year 2025 Results by Segment 1Q (Apr. to Jun.) Forecasts (Apr. to Mar.) FY2025 Latest (Billions of yen) FY20241 FY2025 YoY After FX adjustment Forecasts Revenue 127.1 147.4 +16% +5% 645.0 ESD Operating 22.2 27.4 +23% +5% 162.0 profit Revenue 77.2 87.3 +13% +2% 363.0 TSD Operating 9.7 10
Slide 15: Key Product Catalysts: Endoscopic Solutions Division
Key Product Catalysts: Endoscopic Solutions Division (As of Aug. 7, 2024) ESD Key priorities for FY2025 Focus on further expanding sales of EVIS X1 gastrointestinal endoscopy system globally Collaborate with Canon Medical Systems to bring next-generation endoscopic ultrasound systems to the mark
Slide 16: Key Product Catalysts: Therapeutic Solutions Division
Key Product Catalysts: Therapeutic Solutions Division (As of Aug. 7, 2024) TSD Key priorities for FY2025 GI EndoTherapy Expand clinically differentiated product offerings in key areas of focus: ERCP, ESD, Luminal Patency and Hemostasis devices Urology Expand leadership in BPH through iTind marke
Slide 17: 1Q Other Income and Expenses
1Q of Fiscal Year 2025 Other Income and Expenses 1Q (Apr. to Jun.) (Billions of yen) FY2024 FY2025 Change Other income 0.6 0.6 0 Major items Other expenses 6.3 10.4 +4.1 Expenses related to holistic remediation and transformation program “Elevate” 6.0 (ESD, TSD) Major items Expenses related to F
Slide 18: Fiscal Year 2025 Consolidated Forecasts
Fiscal Year 2025 Consolidated Forecasts Unchanged from previous forecasts. Orthopedic Business is reclassified as a discontinued operation FFY2025 Forecasts FY2025 Latest FY2025 Forecasts (Billions of yen) as of May 10 Forecasts (c)-(a) (c)-(b) as of May 10 (a) (After reclassification) (b)1 ((((Afte
Slide 19: Capital Allocation
Capital Allocation Policy FY2025 Prioritize allocation to business investment Active investment in three focus areas Stable and gradual dividend increase Plan to increase annual dividend by ¥2/share YoY to ¥20/share Flexible buyback of company shares Share buyback of ¥100 billion is in progress Busi
Slide 20: Expenditures: 1Q Actuals and Forecasts
Expenditures: 1Q of Fiscal Year 2025 Actuals and Fiscal Year 2025 Forecasts 1Q results and Forecasts1 (Billions of yen) FY2024 1Q FY2025 1Q FY2025 (Forecasts) (Billions of yen) FY2024 FY2025 R&D expenditures2 (a) 17.6 24.0 96.0 Capitalization of R&D 2.6 3.1 89.0 expenditures (b) R&D expenses in P/L
Slide 21: Foreign Exchange and Sensitivity
Foreign Exchange and Sensitivity No change in FX rate assumptions for full-year forecasts Foreign exchange rate (Yen) FY2024 1Q FY2025 1Q FY2025 Forecasts Yen/U.S.dollar 137.37 155.88 151 Yen/Euro 149.47 167.88 163 Yen/CNY 19.56 21.48 21 Forex sensitivity (annualized impact) (Billions of yen) Revenu
Slide 22: Acronyms
Acronyms Acronyms Term APAC Asia Pacific BPH Benign Prostatic Hyperplasia EBUS-TBNA Endobronchial Ultrasound-guided Transbronchial Fine Needle Aspiration EMR Endoscopic Mucosal Resection ERCP Endoscopic Retrograde Cholangio Pancreatography ESD Endoscopic Submucosal Dissection HPB Hepato-pancreato-bi